Dividend Declaration

RNS Number : 0752M

Taptica International Ltd

10 October 2016

 

10 October 2016

Taptica International Ltd

("Taptica" or the "Company")

Dividend Declaration

On 31 August 2016, Taptica (AIM: TAP), a global end-to-end mobile advertising platform for advertising agencies and brands, announced its interim results and declared a special dividend of $0.0579 per share out of the Company's profits for the six months ended 30 June 2016, with an ex-dividend date of 15 September 2016, a record date of 16 September 2016 and a payment date of 15 November 2016. This equates to a total dividend pay-out of $3.5 million.

As further described below, the record and payment date allow for shareholders who are not Israeli tax residents to apply for, and benefit from, a reduced withholding tax rate.

Withholding Tax Rate

With respect to dividends sourced from "Preferred Enterprise" as defined under the Israeli Tax Ordinance and regulations, the current Israeli rate of withholding tax for qualifying industrial income paid by an Israeli company, which applies to Taptica, is subject to 20% withholding tax.

Entitlement of Non-Israeli Tax Residents to Reduced Rate of Withholding Tax

Shareholders or holders of depositary interests in respect of ordinary shares in the Company who are residents of a country with a tax treaty with Israel, such as the UK, are eligible to benefit from a reduced withholding tax rate ("Eligible Shareholder"). To benefit from a reduced withholding tax rate, Eligible Shareholders 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"). 

Under the Double Taxation Treaty between Israel and the UK (the "UK Treaty"), a shareholder or depositary interest holder who is a British tax resident (and doesn't have a permanent establishment in Israel) who holds less than 10% of the rights of the Company and such dividend income is subject to tax in the UK, is entitled to a reduced withholding tax rate of 15% (the "Reduced Withholding Tax Rate"), provided the Eligible Shareholder submits a duly issued Certificate by 1 November 2016.

An Eligible Shareholder 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. The Form A/114 can be found on the ITA website at https://taxes.gov.il/English/TaxesFormsList/itca114.pdf.

To assist Eligible Shareholders with the process of applying to the ITA to obtain a Certificate in order to benefit from the Reduced Withholding Tax Rate, the Company has obtained a special tax ruling (the "Tax Ruling") from the ITA. According to the Tax Ruling, Tamir Fishman Trusts 2004 Ltd. was appointed to serve as a processing agent for the benefit of Eligible Shareholders (the "Agent"). Accordingly, Eligible Shareholders can approach the Agent within the required time and provide 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 to the tax treaty between their country of residency and Israel. Eligible Shareholders should contact the Agent, via the contact information at the bottom of this announcement, for additional information; if any assistance is required in obtaining a Certificate; or if they have any questions concerning the process.

An Eligible Shareholder must present all the required Documentation and Declarations or valid Certificate to the Agent no later than 1 November 2016 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 1 November 2016, it is expected that the Company 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 1 November 2016, the Company would be required to withhold tax from the dividend according to the rates set out 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.

Taptica's Agent Contact Information:

Tamir Fishman Trusts 2004 Ltd.

Tel: [phone]

Fax: [phone]

Email: [e-mail]

For further details:

Taptica Hagai Tal, Chief Executive Officer                                 Investec Bank (Nomad and broker) Dominic Emery, Henry Reast, Junya Iwamoto    Luther Pendragon (PR adviser) Harry Chathli, Claire Norbury

[phone] [phone] [phone]

About Taptica

Taptica is a global end-to-end mobile advertising platform that helps the world's top brands reach their most valuable users with the widest range of traffic sources available today, including social. Its proprietary technology leverages big data and, combined with state-of-the-art machine learning, enables quality media targeting at scale. Taptica creates a single arena in which brands can scale and engage more relevantly with mobile audiences, staying ahead of the competition. It works with more than 450 advertisers including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, Lyft and Zynga. Taptica is headquartered in Israel with offices in San Francisco, New York, Boston, Beijing and Seoul. Taptica is traded on the London Stock Exchange (AIM: TAP).

 

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