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Dividend: Tax treatment and salient dates
Texton Property Fund Limited
“the Fund” or “the Company”)
Incorporated in the Republic of South Africa)
Registration number:
2005/019302/06)
A Real Estate Investment Trust, listed on the JSE Limited
JSE share code: TEX
ISIN: ZAE000190542 (formerly ISIN: ZAE000185872)
DIVIDEND: TAX TREATMENT AND SALIENT DATES
Shareholders are referred to Texton’s reviewed condensed consolidated
financial statements for the year ended 30 June 2016, published on SENS
on 29 August 2016, wherein shareholders were advised of the final
dividend number 10 (not number 11) of 52,16 cents per share for the
final six- month period to 30 June 2016, bringing the total dividend
for the year ended 30 June 2016 to 103,68 cents per share (2015: 94,77)
(“the dividend”).
In accordance with Texton’ status as a REIT, shareholders are advised
that the dividends meet the requirements of a “qualifying distribution”
for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962
(“Income Tax Act”). The dividends 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.
The dividends received by or accrued to South African tax residents
must be included in the gross income of such shareholders and will
not be exempt from income tax (in terms of the exclusion to the
general dividend exemption, contained in paragraph (aa) of section
10(1)(k)(i) of the Income Tax Act) because they are dividends
distributed by a REIT. These dividends are, 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 dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the company,
as the case may be, should the circumstances affecting the exemption
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,
broker or the company, as the case may be, to arrange for the
abovementioned documents to be submitted prior to payment of the
dividends, if such documents have not already been submitted.
Dividends received by non-resident shareholders will not be taxable
as income and instead will be treated as an ordinary dividend which
is exempt from income tax in terms of the general dividend exemption
in section 10(1)(k)(i)of the Income Tax Act. It should be noted that
up to 31 December 2013 dividends received by non-residents from a
REIT were not subject to dividend withholding tax. Since 1 January
2014, any dividend received by a non-resident from a REIT will be
subject to dividend withholding tax at 15%, 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. Assuming dividend withholding tax will
be withheld at a rate of 15%, the net dividend amount due to
non-resident shareholders is 44,33600 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 their CSDP, broker or the
company, 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, broker or the company, as the case
may be, to arrange for the abovementioned documents to be
submitted prior to payment of the dividends if such documents
have not already been submitted, if applicable.
The dividends are payable to Texton shareholders in accordance with
the timetable set out below:
Dividend declaration date 29 August 2016
Last date to trade cum dividend 27 September 2016
Shares trade ex-dividend 28 September 2016
Record date 30 September 2016
Payment date 3 October 2016
Share certificates may not be dematerialised or rematerialised
between 28 September 2016 and 30 September 2016, both dates
inclusive.
Payment of the dividends will be made to shareholders on
Monday, 3 October 2016. In respect of dematerialised shares,
the dividends will be transferred to the CSDP accounts/broker
accounts on Monday, 3 October 2016.
Certificated shareholders' dividend payments will be deposited on or
about Monday, 3 October 2016.
Texton’s income tax reference number: 9353785158.
Issued shares as at 29 August 2016: 376 066 766.
29 August 2016
Sponsor
Investec Bank Limited
Date: 29/08/2016 05:36:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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