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Dividend declaration: tax treatment and salient dates
TOWER PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2012/066457/06)
JSE share code: TWR ISIN: ZAE000179040
(Approved as a REIT by the JSE)
(“Tower” or “the company”)
DIVIDEND DECLARATION: TAX TREATMENT AND SALIENT DATES
Notice is hereby given that a gross cash dividend of 37.36478 cents per share (dividend number 12) has been
declared from income reserves in respect of the six months ended 31 May 2019. In accordance with Tower’s
status as a REIT, shareholders are advised that the distribution meets the requirements of a qualifying
distribution for the purposes of section 25BB of the Income Tax Act, 58 of 1962 (Income Tax Act). The
distribution on the shares will be deemed to be a dividend for South African tax purposes in terms of section
25BB of the Income Tax Act.
Accordingly the dividend received by South African tax residents must be included in their gross income
and will not be exempt in terms of the ordinary dividend exemption in section 10(1)(k)(i) of the Income Tax
Act, as a result of paragraph (aa) of the proviso thereto which provides that dividends distributed by a REIT
are not exempt from income tax.
The dividend is however, exempt from dividend withholding tax in the hands of South African tax resident
shareholders, provided that the South African resident shareholders provide the following forms to their
Central Securities Depository Participant (CSDP) or broker, as the case may be in respect of uncertificated
shares or the company, in respect of certificated shares:
(a) a declaration that the dividends are exempt from dividend tax; and
(b) a written undertaking to inform the CSDP or broker, as the case may be, should the circumstances
affecting the reduced rate change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are
advised to contact their CSDP or broker, as the case may be, to arrange for the abovementioned documents
to be submitted prior to the payment of the distribution if such documents have not already been submitted.
Dividends received by non-resident shareholders will be exempt from income tax in terms of section
10(1)(k)(i) of the Income Tax Act. The dividends withholding tax rate is 20%, accordingly, any dividend
will be subject to dividend withholding tax levied at a rate of 20%, unless the rate is reduced in terms of
any applicable agreement for the avoidance of double taxation (DTA) between South Africa and the country of
residence of the shareholder.
Should dividend withholding tax be withheld at a rate of 20%, the net dividend amount due to non- resident
shareholders is 29.89182 cents per share. A reduced dividend withholding rate in terms of the applicable
DTA may only be relied on if the non-resident shareholder has provided the following forms to their CSDP
or broker, as the case may be in respect of uncertificated shares or the company, in respect of certificated
shares:
(a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
(b) a written undertaking to inform the CSDP or broker, as the case may be, should the circumstances
affecting the reduced rate change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non- resident
shareholders are advised to contact their CSDP or broker, as the case may be, to arrange for the
abovementioned documents to be submitted prior to the payment of the distribution if such documents have
not already been submitted.
The dividend is payable to Tower shareholders in accordance with the timetable set out below:
2019
Last day to trade cum dividend distribution: Tuesday, 17 September
Shares trade ex dividend distribution: Wednesday, 18 September
Record date: Friday, 20 September
Payment date: Monday, 23 September
Share certificates may not be dematerialised or rematerialised between Wednesday, 18 September 2019 and
Friday, 20 September 2019, both days inclusive. The dividend will be transferred to dematerialised
shareholders’ CSDP accounts or broker accounts on Monday, 23 September 2019. Certificated shareholders’
dividend payments will be paid to certificated shareholders’ bank accounts on or about Monday,
23 September 2019.
Shares in issue at date of declaration (excluding treasury shares): 337 244 093.
Tower’s income tax reference number: 9607/564/16/9.
30 August 2019
Sponsor
Java Capital
Date: 30/08/2019 08:01:00
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