Withholding Tax on Dividends

RNS Number : 8140N

Plus500 Limited

12 September 2013

 



For immediate release

12 September 2013

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 to be paid by the Group on 3 October 2013, as set forth below.

On 27 August 2013, the Group announced its maiden interim dividend of $8.0 million ($0.07 per share) ("Dividend"), which traded ex-dividend on 4 September 2013. Payment of the Dividend will be made on 3 October 2013 to shareholders on the register as at close of business on 6 September 2013.

Withholding Tax Treatment

As set out in the Group's Admission Document, with respect to dividends sourced from regular earnings, the current Israeli rate of withholding tax on dividends paid by an Israeli company is 30 per cent. for distributions to a "substantial shareholder" (being someone who holds, directly or indirectly, by himself or "together with another", at least 10 per cent. of one or more of the means of control in the company - "together with another" means together with a relative, or together with someone who is not a relative but with whom, according to an agreement, there is regular cooperation in material matters of the Company, directly or indirectly) and 25 per cent. with respect to distributions to all other holders of Ordinary Shares.

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

In order for a shareholder which is not an Israeli tax resident to be entitled to a reduced withholding tax rate under a tax treaty between Israel and the country of his/her residence (if applicable), a shareholder must apply to the Israel Tax Authority (the "ITA") by completing a Claim for Reduced Rate of Withholding Tax/Exemption from Withholding Tax in Israel for Non-Residents Form ("Form A/114") and receive a certificate for a reduced withholding tax rate as set in the applicable tax treaty (the "Certificate").

After receiving the Certificate, the shareholder must present the Certificate to Plus500 at least 3 business days before the payment date of the Dividend and Plus500 shall withhold tax at source upon the distribution the Dividend to shareholders according to the rate set in the Certificate. In this respect, please note that a shareholder who is a British tax resident and is entitled to benefit from the Double Taxation Treaty between Israel and the UK (the "UK Treaty") must provide such a Certificate in order to be entitled to the current reduced withholding tax rate of 15 per cent. according to the UK Treaty. If a Certificate is not provided to Plus500 at least 3 business days before the payment date of the Dividend, then Plus500 is required to withhold tax from dividend distributions according to the rates set above.

Shareholders are advised to consult with their own personal tax and financial advisors as to the tax consequences resulting from their personal tax situation.

For further details:

Plus500 Ltd.

Elad Even-Chen, Head of Investor Relations                                                  Tel: [phone]

[e-mail]

Liberum Capital - Nomad and Broker

Chris Bowman / Christopher Britton / Thomas Bective                               Tel: [phone]

www.liberumcapital.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 1,700 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 30 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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