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Dividend tax treatment and salient dates
DIPULA INCOME FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/013963/06)
JSE share code: DIB ISIN: ZAE000203394
(Approved as a REIT by the JSE)
("Dipula" or "the Company")
DIVIDEND TAX TREATMENT AND SALIENT DATES
Shareholders are referred to Dipula's reviewed condensed consolidated financial results for the year ended
31 August 2024, published on SENS on Wednesday, 13 November 2024, wherein shareholders were advised that the
board approved a final gross dividend (dividend number 25) for the period 1 March 2024 to 31 August 2024 of
24.37996 cents per ordinary share.
The dividend will be payable to Dipula shareholders in accordance with the timetable set out below:
Last day to trade cum dividend Tuesday, 3 December 2024
Shares trade ex-dividend Wednesday, 4 December 2024
Record date Friday, 6 December 2024
Payment date Monday, 9 December 2024
Share certificates may not be dematerialised or rematerialised between Wednesday, 4 December 2024 and Friday,
6 December 2024, both days inclusive. The dividend will be transferred to dematerialised shareholders' CSDP
accounts/broker accounts on Monday, 9 December 2024.
TAX TREATMENT
In accordance with Dipula's status as a REIT, shareholders are advised that the dividends meet the requirements of a
"qualifying distribution" for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 ("Income Tax Act")
and will be deemed to be dividends, for South African tax purposes, in terms of section 25BB of the Income Tax Act.
The dividends received by or accrued to South African tax residents must be included in the gross income of such
shareholders and will not be exempt from income tax (in terms of the exclusion to the general dividend exemption,
contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because they are dividends distributed by a
REIT. The dividends are, however, exempt from dividend withholding tax in the hands of South African tax resident
shareholders, provided that such shareholders provide the following forms to their Central Securities Depository
Participant ("CSDP") or broker, as the case may be, in respect of uncertificated shares, or the Company, in respect of
certificated shares:
(a) a declaration that the dividends are exempt from dividends tax; and
(b) a written undertaking to inform the CSDP, broker or the Company, as the case may be, should the circumstances
affecting the exemption change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to
contact their CSDP, broker or the Company, as the case may be, to arrange for the abovementioned documents to be
submitted prior to payment of the dividend, if such documents have not already been submitted.
Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary
dividend which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the
Income Tax Act. Any distribution received by a non-resident from a REIT will be subject to dividend withholding tax
at 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation ("DTA")
between South Africa and the country of residence of the shareholder. Assuming dividend withholding tax will be
withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is 19.50397 cents per share. A
reduced dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident shareholder
has provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the
Company, in respect of certificated shares:
(a) a declaration that the dividends are subject to a reduced rate as a result of the application of a DTA; and
(b) a written undertaking to inform their CSDP, broker or the Company, as the case may be, should the circumstances
affecting the reduced rate change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident shareholders are
advised to contact their CSDP, broker or the Company, as the case may be, to arrange for the abovementioned documents
to be submitted prior to payment of the dividends if such documents have not already been submitted, if applicable.
Shares in issue at the date of declaration of the dividends: 912 001 700
Dipula's income tax reference number: 9743/798/14/3
The dividend may have tax implications for resident as well as non-resident shareholders. Shareholders are therefore
encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to take.
13 November 2024
Sponsor
Java Capital
Date: 13-11-2024 08:01:00
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