Plus500 Limited Withholding Tax on Dividends (9301Y)
09 March 2017 - 6:00PM
UK Regulatory
TIDMPLUS
RNS Number : 9301Y
Plus500 Limited
09 March 2017
9 March 2017
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 7 February 2017, the Group announced a final dividend per
share of $0.3799 ($43.6 million) and a special dividend per share
of $0.2729 ($31.4 million) amounting to an aggregate dividend of
$0.6528 per share (the "Dividend"), which traded ex-dividend on 2
March 2017. Payment of the Dividend will be made on 3 July 2017 to
shareholders on the register as at close of business on 3 March
2017.
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 is
applying to the ITA to obtain a special tax ruling (the "Tax
Ruling"). According to the Tax Ruling, ESOP Management & Trust
Services Ltd. is being 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 7 July
2017, 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 7 July 2017,
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 7 July 2017, 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
Enquiries
Plus500
Elad Even-Chen, Chief Financial +972 4 8189503
Officer ir@Plus500.com
Liberum (NOMAD and broker)
Clayton Bush, Neil Elliot,
Josh Hughes +44 20 3100 2222
Berenberg (Joint Broker)
Chris Bowman, Amritha Murali,
Marie Stolberg +44 20 3207 7800
MHP Communications
Reg Hoare, Tim Rowntree, +44 20 3128 8100
Kelsey Traynor Plus500@mhpc.com
About Plus500
Plus500 operates an online trading platform for retail customers
to trade CFDs internationally over more than 2,100 different
underlying global financial instruments comprising equities,
indices, commodities, options, ETFs and foreign exchange. Retail
customers of Plus500 can trade CFDs in more than 50 countries and
in 31 languages. The trading platform is also accessible from
multiple operating systems (Windows, smartphones (iOS, Android and
Windows Phone), tablets (iOS, Android and Surface), Apple Watch and
web browsers).
Plus500 retains operating licences and is regulated in the
United Kingdom, Australia, Cyprus, South Africa, New Zealand and
Israel. Customer care is integral to Plus500: customers cannot lose
more than they deposit and there are no commissions on trades.
Plus500 offers its customers sophisticated risk management tools to
manage their trading positions and a free demo account is available
on an unlimited basis for platform users.
www.plus500.com
This information is provided by RNS
The company news service from the London Stock Exchange
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