Wednesday, 08 February 2017 17:23

Dividend for the quarter ended 31 December 2016 Salient dates and tax treatment

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The board of directors has approved the dividend for the quarter ended 31 December 2016.


Notice is hereby given of a cash dividend (dividend number 7) of 23,82951 cents per share for the quarter ended 31 December 2016, in accordance with the salient dates set out below: 

Share certificates may not be dematerialised or rematerialised between Wednesday, 1 March 2017 and Friday, 3 March 2017. Payment of the dividend will be made to shareholders on Monday, 6 March 2017. In respect of dematerialised shares, the dividend will be transferred to the CSDP/broker accounts on Monday, 6 March 2017. Certificated shareholder’s divided payment will be deposited on or about Monday, 6 March 2017.  

In accordance with Indluplace’s status as a REIT, shareholders are advised that the dividend meets 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 distribution on shares will be deemed to be a dividend, for South African tax purposes, in terms of section 25BB of the Income Tax Act.  

The dividend 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. This dividend is, however, exempt from dividends withholding tax in the hands of South African tax resident shareholders, provided that the South African resident shareholders provided 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 dividend, 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 dividends which are 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.

From 1 January 2014, any dividend received by a non-resident from a REIT is subject to dividends 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 shareholders. Assuming dividend withholding tax will be withheld at a rate of 15%, the net dividend amount due to non-resident shareholders is 20,25508 cents per share. A reduced dividend withholding rate in terms of the applicable DTA, may only be relied on if the non-resident shareholders have provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shareholders, or the company, in respect of certificated shareholders:  

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 dividend if such documents have not already been submitted, if applicable.  

Shares in issue at the date of declaration of this dividend: 241 945 767 Indluplace’s income tax reference number: 9390/649/177 

Last modified on Friday, 10 February 2017 10:05

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