ZIM Updates on Withholding Tax Procedures on April 2025 Cash Dividend
ZIM Integrated Shipping Services (NYSE: ZIM) has provided an update regarding withholding tax procedures for its upcoming dividend distribution scheduled for April 3, 2025. The company will distribute $3.17 per ordinary share, totaling approximately $382 million, to shareholders of record as of March 24, 2025.
The company has obtained a tax ruling from the Israeli Tax Authority that allows certain shareholders to benefit from a Reduced Withholding Tax Rate, compared to the standard rates of 30% for substantial shareholders and 25% for other shareholders. To qualify, shareholders must submit required documentation to the appointed agent, IBI Trust Management, between the payment date and May 5, 2025.
On the payment date, ZIM will withhold 25% of the dividend amount and remit it to the agent, while the remaining 75% will be distributed through the transfer agent, Equiniti Trust Company,
ZIM Integrated Shipping Services (NYSE: ZIM) ha fornito un aggiornamento riguardo le procedure di ritenuta fiscale per la sua prossima distribuzione di dividendi, programmata per il 3 aprile 2025. L'azienda distribuirà 3,17 dollari per azione ordinaria, per un totale di circa 382 milioni di dollari, agli azionisti registrati al 24 marzo 2025.
L'azienda ha ottenuto un parere fiscale dall'Autorità Fiscale Israeliana che consente a determinati azionisti di beneficiare di un Aliquota Fiscale Ridotta, rispetto alle aliquote standard del 30% per gli azionisti sostanziali e del 25% per gli altri azionisti. Per qualificarsi, gli azionisti devono presentare la documentazione richiesta all'agente designato, IBI Trust Management, tra la data di pagamento e il 5 maggio 2025.
Alla data di pagamento, ZIM tratterrà il 25% dell'importo del dividendo e lo trasferirà all'agente, mentre il restante 75% sarà distribuito tramite l'agente di trasferimento, Equiniti Trust Company.
ZIM Integrated Shipping Services (NYSE: ZIM) ha proporcionado una actualización sobre los procedimientos de retención de impuestos para su próxima distribución de dividendos programada para el 3 de abril de 2025. La compañía distribuirá 3,17 dólares por acción ordinaria, totalizando aproximadamente 382 millones de dólares, a los accionistas registrados al 24 de marzo de 2025.
La compañía ha obtenido un dictamen fiscal de la Autoridad Fiscal de Israel que permite a ciertos accionistas beneficiarse de una Tasa de Retención de Impuestos Reducida, en comparación con las tasas estándar del 30% para accionistas sustanciales y del 25% para otros accionistas. Para calificar, los accionistas deben presentar la documentación requerida al agente designado, IBI Trust Management, entre la fecha de pago y el 5 de mayo de 2025.
En la fecha de pago, ZIM retendrá el 25% del monto del dividendo y lo remitirá al agente, mientras que el 75% restante se distribuirá a través del agente de transferencia, Equiniti Trust Company.
ZIM 통합 해운 서비스 (NYSE: ZIM)는 2025년 4월 3일로 예정된 배당금 분배에 대한 원천징수 세금 절차에 대한 업데이트를 제공했습니다. 회사는 보통주 1주당 3.17달러를 배당하여, 총 약 3억 8천2백만 달러를 2025년 3월 24일 기준 주주에게 분배할 예정입니다.
회사는 이스라엘 세무 당국으로부터 특정 주주가 감면 원천징수 세율의 혜택을 받을 수 있도록 허가받았습니다. 이는 실질 주주에게는 30%, 기타 주주에게는 25%의 표준 세율에 비해 낮은 세율입니다. 자격을 갖추기 위해 주주는 지급일과 2025년 5월 5일 사이에 지정된 대리인인 IBI Trust Management에 필요한 문서를 제출해야 합니다.
지급일에 ZIM은 배당금의 25%를 원천징수하여 대리인에게 송금하고, 나머지 75%는 전환 대리인인 Equiniti Trust Company를 통해 분배할 것입니다.
ZIM Integrated Shipping Services (NYSE: ZIM) a fourni une mise à jour concernant les procédures de retenue d'impôt pour sa prochaine distribution de dividendes prévue pour le 3 avril 2025. La société distribuera 3,17 dollars par action ordinaire, totalisant environ 382 millions de dollars, aux actionnaires inscrits au 24 mars 2025.
La société a obtenu un avis fiscal de l'Autorité fiscale israélienne qui permet à certains actionnaires de bénéficier d'un Taux de Retenue d'Impôt Réduit, par rapport aux taux standards de 30% pour les actionnaires substantiels et de 25% pour les autres actionnaires. Pour se qualifier, les actionnaires doivent soumettre la documentation requise à l'agent désigné, IBI Trust Management, entre la date de paiement et le 5 mai 2025.
À la date de paiement, ZIM retiendra 25% du montant du dividende et le remettra à l'agent, tandis que les 75% restants seront distribués par l'intermédiaire de l'agent de transfert, Equiniti Trust Company.
ZIM Integrated Shipping Services (NYSE: ZIM) hat ein Update zu den Verfahren zur Quellensteuer für die bevorstehende Dividendenverteilung gegeben, die für den 3. April 2025 geplant ist. Das Unternehmen wird 3,17 US-Dollar pro Stammaktie verteilen, was insgesamt etwa 382 Millionen US-Dollar entspricht, an die Aktionäre, die am 24. März 2025 im Aktienregister stehen.
Das Unternehmen hat eine Steuerentscheidung von der israelischen Steuerbehörde erhalten, die es bestimmten Aktionären ermöglicht, von einem Reduzierten Quellensteuersatz zu profitieren, im Vergleich zu den Standardraten von 30% für wesentliche Aktionäre und 25% für andere Aktionäre. Um sich zu qualifizieren, müssen die Aktionäre die erforderlichen Unterlagen dem benannten Vertreter, IBI Trust Management, zwischen dem Zahlungstermin und dem 5. Mai 2025 vorlegen.
Am Zahlungstermin wird ZIM 25% des Dividendenbetrags einbehalten und an den Vertreter überweisen, während die verbleibenden 75% über den Übertragungsagenten, Equiniti Trust Company, verteilt werden.
- Significant dividend payment of $3.17 per share ($382 million total)
- Opportunity for shareholders to qualify for reduced tax withholding rates
- Clear process established for tax reduction applications
- Complex tax withholding procedure requiring extensive documentation
- timeframe (until May 5, 2025) to submit required documentation
- No guarantee of future dividend payments
As a result of the Ruling, certain shareholders of the Company ("Shareholders") may be eligible to a reduced Israeli withholding tax rate with respect to their share of this Dividend, in comparison to the generally applicable withholding tax rate (the "Reduced Withholding Tax Rate"), under certain terms and conditions as set forth below.
The description provided below is not intended to constitute a complete analysis of withholding tax rate procedures relating to the distribution of the Dividend, nor does it address the actual tax liability of any of the Shareholders, but merely relates to the Israeli withholding tax procedures relating to the distribution of the Dividend. Other than the Dividend previously declared by the Company to be paid on April 3, 2025, there is no guarantee the Company will declare additional dividends in the future.
Shareholders are advised to consult their own tax and financial advisors concerning the tax consequences of each particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction. For the avoidance of doubt, the Agent IBI Trust Management (whose information is provided below) has been retained by ZIM for the purpose of coordinating certain procedures relating to the Ruling, and it is NOT intended that the Agent will provide any tax advice to any of the Shareholders, who are encouraged to consult their own tax and financial advisors.
Forms required to be submitted to the Agent in connection with the Ruling as described below are available in the following link - here (the full link appears below, under the Agent's contact information), and can also be found on the Company's website here.
Background
On March 12, 2025, ZIM announced a dividend payment of
General Withholding Tax Treatment under Israeli Law
As set out in the Company's Annual Report on Form 20-F filed with the Commission on March 12, 2025, with respect to dividends sourced from regular earnings, under the Israeli Tax Ordinance and regulations issued under the Israeli Tax Ordinance (collectively, "ITO"), the current Israeli rate of withholding tax on dividends paid by an Israeli company is
Summary of the Main Terms of the Ruling
The following is a summary of some of the key terms of the Ruling. It is emphasized that the description below does not purport to exhaust all the terms and conditions included in the Ruling and is not a complete translation of the Ruling. In order to enjoy the Reduced Withholding Tax Rate, Shareholders must comply with all the terms of the Ruling, a copy of which in the Hebrew language as well as an unofficial non-binding English translation thereof can be obtained free of charge by email by approaching the Agent (as defined below) at the contact details provided below.
- On the Payment Date the Company will withhold
25% of the Dividend amount and will remit the tax amount to the Agent, to be handled by the Agent in accordance with the terms and conditions of the Ruling. - The remaining
75% of the Dividend amount will be remitted by the Company to its transfer agent, Equiniti Trust Company, LLC, which will transfer the said amount to the Shareholders (including through brokers who hold in brokerage accounts ZIM shares on behalf of Shareholders). - A Shareholder who is a resident of a country with which
Israel has a tax treaty ("Treaty State") (based on a declaration to be provided by such Shareholder) and is the beneficial owner of the Dividend, as well as a Shareholder who is a foreign (i.e., non-Israeli) resident of a country with whichIsrael does NOT have a tax treaty and is the beneficial owner of the Dividend, may apply to the Agent requesting a Reduced Tax Withholding Rate. Such application must be received by the Agent between the Payment Date and May 5, 2025 (the "Change of Rate Period"). - A Shareholder who declared that he or she is a resident of a Treaty State and is the beneficial owner of the Dividend may apply to the Agent during the Change of Rate Period only (subject to complying with all the documentation requirements detailed below) requesting the receipt of the monetary difference between the tax amount remitted to the Agent (at a rate of
25% ) and the amount represented by the withholding tax rate set forth in the tax treaty betweenIsrael and such Treaty State or by the limited withholding tax rate applicable to such dividend payment under the ITO, to the extent applicable. - A Shareholder who did not declare that it, he or she is a resident of a Treaty State and is the beneficial owner of the Dividend, may apply to the Agent during the Change of Rate Period only (subject to complying with all the documentation requirements detailed below) requesting the receipt of the monetary difference between the tax amount remitted to the Agent (at a rate of
25% ) and the amount represented by the withholding tax rate applicable to such dividend payment under the ITO or by the limited withholding tax rate applicable to such dividend payment under the ITO, to the extent applicable. - Any Shareholder who claims to be entitled to a Reduced Tax Withholding Rate in accordance with the foregoing, will be required to provide the Agent with all relevant documentation as detailed in the Ruling and the forms available in the following link, on no later than May 5, 2025 (the end of Change of Rate Period), including but not limited to, bank account details to which the dividend payment should be transferred, number of ZIM shares owned by the Shareholder in such account, identification document, and confirmation of residence for the tax year 2025 issued by the taxing authority of the state of tax residence.
- In addition to the foregoing, the Shareholder will provide a written declaration in the form annexed to this announcement which will include declarations as to the following: (i) the Shareholder's tax residence for the tax year 2025, (ii) the Shareholder's beneficial ownership of the dividend, (iii) the investment in ZIM shares has not been made through a permanent establishment in
Israel , (iv) the holding of ZIM shares is made for the Shareholder's own account and not for the account of others, and (v) the payment will not be made to a permanent establishment of the Shareholder outside of the Shareholder's tax residence. - A non-Israeli corporate Shareholder (excluding a Shareholder covered by section 9 below) that requests a Reduced Tax Withholding Rate, will also need to provide the Agent with its updated shareholders register as of March 24, 2025, and a statement confirming that more than
75% of its shareholders, directly or indirectly, are individuals of its state of residence for the tax year 2025. - A publicly traded non-Israeli corporate Shareholder whose shares are traded on a stock market outside of
Israel and is a resident of a Treaty State, or a direct or indirect subsidiary of such Shareholder, will also provide the Agent with a declaration that it is a resident of such Treaty State or another non-Israeli state for the tax year 2025, as applicable. - An Israeli corporate Shareholder which is entitled to a Reduced Tax Withholding Rate (including an exemption from withholding tax at source), will be able to apply to the Agent no later than May 5, 2025, (the end of the Change of Rate Period) and enclose an applicable valid ITA issued certificate setting forth a Reduced Tax Withholding Rate or an exemption from withholding tax. In addition, such Shareholder will enclose its certificate of incorporation and all other documents required as set forth above, mutatis mutandis as requested by the Agent.
- The Agent is entitled to request from the Shareholders applying for a Reduced Tax Withholding Rate additional documents in its discretion insofar as they are required to establish the tax residence of the Shareholder or its entitlement to exemption and/or to a Reduced Tax Withholding Rate.
- Notwithstanding the foregoing, no refund of excess tax withholding shall be affected by the Agent with respect to any Shareholder holding more than
5% of the issued share capital of the Company, or whose entitlement to dividend from the Company pursuant to the Dividend exceeds$500,000 - The transfer of the amounts withheld, excluding the amounts returned to the Shareholders, as aforementioned, shall be conducted by the Agent. Subject to receipt by the Agent of your required documentation, the Agent will return the amounts withheld to the Shareholders as detailed above to the account at which the dividend payment was made within 30 days from the date the amounts withheld are paid to the ITA.
- The Ruling is aimed to address solely the issue of tax withholding procedures and should not be construed as setting the actual tax liability of any Shareholder with respect to the Dividend or otherwise.
Appointment of Israeli Tax Withholding Agent
In order to facilitate the implementation of the procedures set forth in the Ruling for the benefit of its Shareholders, the Company appointed IBI Trust Management to serve as a processing agent for the benefit of the Shareholders in connection with the distribution of the Dividend (the "Agent"). Contact information of the Agent is provided at the bottom of this announcement. We encourage you to contact the Agent if you need any clarifications in filling-in the forms required under the Ruling to obtain a Reduced Withholding Tax Rate, or if you have any questions concerning the process. Please note that the Agent will not provide any tax advice to any Shareholder, who should consult their own tax and financial advisors.
In order to be eligible to benefit from a Reduced Withholding Tax Rate, Shareholders must provide the Agent with all documentation required under the Ruling not later than May 5, 2025. The relevant forms are included in the following link.
If a Shareholder fails to provide the Agent with all the documentation required by May 5, 2025, the Agent will not be able to attend to such Shareholder's application and will not be able to return any amounts originally remitted on behalf of such Shareholder nor provide any confirmation of tax withholding to such a Shareholder, either in connection with the Ruling or in connection with any other tax filing by such Shareholder.
ZIM's Agent Contact Information:
IBI Trust Management
Tel No: +972-3-5193896, +972-506-209-410
Email: ZimDividend@ibi.co.il
Link to forms:
About ZIM
Founded in
ZIM Contacts
Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com
Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com
Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com
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SOURCE ZIM Integrated Shipping Services Ltd.
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