Withholding Tax on Dividends

RNS Number : 7456R

Plus500 Limited

16 September 2014

 



16 September 2014

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 13 August 2014, the Group announced an interim dividend per share of $0.235 ($27 million) ("Dividend"), which traded ex-dividend on 20 August 2014. Payment of the Dividend will be made on 19 September 2014 to shareholders on the register as at close of business on 22 August 2014.

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 5 October 2014, 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 5 October 2014, 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 5 October 2014, 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: [phone]

Fax No: [phone]

Email: [e-mail]

For further details:

Plus500 Ltd.

Elad Even-Chen, VP Business Development and Head of Investor Relations     Tel: [phone]

[e-mail]

Liberum - Nomad and Broker

Chris Bowman / Thomas Bective                                                                                        Tel: [phone]

www.liberum.com 

Buchanan

Jeremy Garcia / Sophie McNulty / Clare Akhurst                                                            Tel: [phone]

www.buchanan.uk.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 2,100 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.

 

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