Plus500 Limited Withholding Tax on Dividends (2289G)
02 March 2015 - 8:54PM
UK Regulatory
TIDMPLUS
RNS Number : 2289G
Plus500 Limited
02 March 2015
2 March 2015
Plus500 Ltd.
("Plus500" or "the Group")
Withholding Tax on Dividends
Plus500, a leading online service provider for retail customers
to trade CFDs internationally, sets out below the process by which
Plus500 will withhold tax on any dividends distributed by the
Group, including with respect to the upcoming dividend, as set
forth below.
On 25 February 2015, the Group announced a final dividend per
share of $0.3001 ($34.5million) and a special dividend per share of
$0.2657 ($30.5 million) (the "Dividend"), which will trade
ex-dividend on 19 March 2015. Payment of the Dividend will be made
on 15 May 2015 to shareholders on the register as at close of
business on 20 March 2015.
Withholding Tax Treatment
As set out in the Group's Admission Document, with respect to
dividends sourced from regular earnings, under the Israeli Tax
Ordinance and regulations ("ITO"), the current Israeli rate of
withholding tax on dividends paid by an Israeli company is 30% for
distributions to a "substantial shareholder" (in general, being
someone who holds, directly or indirectly, by himself or together
with others, at least 10% of one or more of the means of control in
the company) and 25% with respect to distributions to all other
holders of Ordinary Shares ("Withholding Tax").
Entitlement of Non-Israeli Tax Residents to a Reduced Rate of
Withholding Tax
In order for a holder of depositary interests in respect of
ordinary shares ("DI holder"), which is not an Israeli tax
resident, to benefit from a reduced withholding tax rate under a
tax treaty between Israel and the country of his/her residence,
such as the UK, a shareholder must apply to the Israel Tax
Authority (the "ITA") and obtain from the ITA a certificate for a
reduced withholding tax rate as set in the applicable tax treaty
(the "Certificate"). In general, under the Double Taxation Treaty
between Israel and the UK (the "UK Treaty"), a DI holder who is a
British tax resident who holds less than 10% of the rights of the
company and such dividend income is subject to tax in the UK and
should be entitled to benefit from the UK Treaty, is entitled to a
reduced withholding tax rate of 15% (the "Reduced Withholding Tax
Rate"), provided the DI holder submits a duly issued Certificate
prior to the payment date.
A DI holder may obtain a Certificate by submitting to the ITA a
completed ITA Form A/114 (titled "Claim for Reduced Rate of
Withholding Tax/Exemption from Withholding Tax in Israel for
Non-Residents Form") and any additional information or documents
that may be requested by the ITA.
In order to assist Plus500's investors who are residents of
countries that have a tax treaty with Israel from the requirement
to apply to the ITA with respect of obtaining a Certificate in
order to benefit from the Reduced Withholding Tax Rate, Plus500 has
applied to the ITA and obtained a special tax ruling (the "Tax
Ruling"). In general, according to the Tax Ruling ESOP Management
& Trust Services Ltd. was appointed to serve as a processing
agent for the benefit of the investors (the "Agent"). Accordingly,
Plus500's investors who are residents of countries that have a tax
treaty with Israel may approach the Agent within the required time
and provide the Agent with the required documentation and
declarations as was set in the Tax Ruling ("Documentation and
Declarations") in order to be entitled to receive the Reduced
Withholding Tax Rate from the dividend according the tax treaty
between his/her country of residency and Israel. If such relief is
relevant for you, please contact the Agent for additional
information. Contact information of the Agent is provided at the
bottom of this announcement. We encourage you to contact the Agent
if you need any assistance in obtaining a Certificate or have any
questions concerning the process.
A DI holder must present all the required Documentation and
Declarations or valid Certificate to the Agent no later than 30
April 2015, in order to benefit from the Reduced Withholding Tax
Rate. Accordingly, if all the required Documentation and
Declarations or a valid Certificate is presented to the Agent
before 30 April 2015, it is expected that Plus500, via the Agent,
would be able to reimburse the difference between the applied
Withholding Tax rate at the time of payment of the Dividend and the
Reduced Withholding Tax Rate, if applicable.
If the Documentation and Declarations or the valid Certificate
is not provided to the Agent by 30 April 2015, Plus500 would be
required to withhold tax from the Dividend according to the rates
set above without taking into account the Reduced Withholding Tax
Rate.
Shareholders are advised to consult with their own personal tax
and financial advisers as to the tax consequences resulting from
their personal tax situation.
Plus500's Agent Contact Information:
ESOP Management & Trust Services Ltd.
Tel No: +972-3-7536823
Fax No: +972-3-7602636
Email: esop-helpdesk@esop.co.il
For further details:
Plus500 Ltd.
Elad Even-Chen, Finance Director, VP Business Development and
Head of Investor Relations Tel: +972-4-8189503
ir@Plus500.com
Liberum - Nomad and Broker
Chris Bowman / Christopher Britton / Josh Hughes Tel: 020 3100
2222
www.liberum.com
Company website: www.plus500.com
About Plus500
Plus500 has developed and operates an online trading platform
for retail customers to trade CFDs internationally over more than
2,000 different underlying global financial instruments comprising
equities, ETFs, foreign exchange, indices and commodities. The
Group enables retail customers to trade CFDs in more than 50
countries. The trading platform is accessible from multiple
operating systems (Window, smartphones (iOS and Android) and
tablets (iOS and Android)) and the internet. The Directors believe
that the success of the Group to date has been primarily due to the
proprietary technology it has developed and continues to develop to
support the trading platform. The trading platform has been
designed to be as intuitive and easy to use as possible. The
trading platform has been localised into 31 languages. The
Directors believe that this emphasis on technology, together with
the Group's targeted online marketing strategy, has helped to
differentiate the Group from its competitors.
This information is provided by RNS
The company news service from the London Stock Exchange
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