Plus 500:Dividend Declaration 

Dividend Declaration

Further to the announcement dated 23 November 2015, Plus500 has issued today a press release to inform that the firm declare an interim dividend in respect of the 6 month period to June 2015 of $0.2121 per share, with a total dividend pay-out of $24.37 million. This dividend represents a distribution of 60% of H1 2015 net profit, in line with the Company’s stated dividend policy.

Read also: Plus500: Termination of Merger, Dividend and Share Buyback 

The dividend will be paid on 29 February 2016 to shareholders on the register at close of business on 8 January 2016 with the shares marked ex-dividend on 7 January 2016. 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.

According to Plus500 release:

Withholding Tax Treatment

As previously announced and set out in the Company’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 24 February 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 24 February 2016, 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 24 February 2016, 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.

Source: Plus500

Director Dealing

Further to the above announcement, Plus500 informed on December 14 that it has today received notification that, on 1 October 2015, Mr. Alastair Gordon, a non-executive director of the Company, transferred 4,150 ordinary shares of NIS 0.01 each in the Company (“Ordinary Shares”) to his wife, Felicity Mary Claire Gordon, for nil consideration.

Following this transaction, Mr. Alastair Gordon and his wife have interest in 26,482 and 4,150 Ordinary Shares respectively, representing approximately 0.023% and 0.004% of Plus500’s issued share capital. Mr. Alastair Gordon and his wife’s aggregate holding remains 30,632 Ordinary Shares representing approximately 0.027% of Plus500’s issued share capital.

Source: Plus500

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