Poland-based company Globe Trade Centre S.A. (GTC) has recently finalized its cash dividend payment for shareholders in South Africa, according to an official announcement. This development follows the earlier announcement made on 21 June 2023 regarding the foreign dividend payment. The cash dividend per share is PLN 0.23, which, when converted to South African cents at the exchange rate of PLN 1.00 : ZAR 4.517, totals 103.891.
The crucial dates related to the Cash Dividend are as follows:
- Last date to trade cum-dividend rights on the Johannesburg Stock Exchange (JSE): Tuesday, 11 July 2023
- GTC shares will trade ex-dividend rights on the JSE: Wednesday, 12 July 2023
- Dividend Record Date: Friday, 14 July 2023
- Payment Date: Friday, 15 September 2023
During the period from 12 July 2023 to 14 July 2023, inclusive, South African shareholders should note that share certificates cannot be dematerialized or rematerialized. Furthermore, the transfer of GTC shares between the Polish share register and the South African share register will not occur during this timeframe.
South African shareholders are advised to reach out to their Central Securities Depository Participant (CSDP) or brokers for further guidance and assistance regarding the Cash Dividend.
It is important to understand that GTC is a company incorporated under Polish laws, with its primary listing on the Warsaw Stock Exchange. Therefore, the Cash Dividend process adheres to Polish regulations. Shareholders are encouraged to visit GTC’s website, specifically referring to Current Report 14/2023, for comprehensive information on the Cash Dividend announcement made to GTC shareholders on the Warsaw Stock Exchange.
Tax Implications for the Cash Dividend
Polish Dividend Withholding Tax (PWHT): Polish dividend withholding tax at a rate of 19% will be deducted in Poland and remitted to the Polish Tax Authorities. However, shareholders may be eligible for a reduced rate of PWHT based on Polish domestic law or a Double Tax Agreement (DTA). The applicable tax rate can be either 5% or 15%, depending on specific criteria.
South African shareholders are advised to refer to the relevant DTA concluded between Poland and South Africa to determine the applicable PWHT rate.
South African Dividends Withholding Tax (SADWT): Dividends received from foreign resident companies, including GTC, in relation to shares listed on the Johannesburg Stock Exchange (JSE) are classified as foreign dividends for South African income tax and dividends withholding tax purposes. The Cash Dividend declared by GTC will be subject to South African Dividends Tax (SADWT) at a rate of 20%.
However, shareholders may qualify for an exemption or a reduced rate of dividends tax. Shareholders meeting the criteria for an exemption will have the Cash Dividend subject to a reduced PWHT rate of 15% and South African Dividends Tax at a rate of 5%.