- Richemont SA announces dividend payments for its South African ‘A’ shares on the Johannesburg Stock Exchange (JSE).
- Shareholders will receive dividends in Swiss Francs (CHF) and South African Rand (ZAR).
- Key dates to remember: finalisation date on September 12, 2023, dividend payment date on September 28, 2023, and restrictions on share transactions between September 20 and 22, 2023.
Luxury goods company Richemont SA has shared important information about the dividend payments for its South African ‘A’ shares, which are traded on the Johannesburg Stock Exchange (JSE). Shareholders will receive dividends in Swiss Francs (CHF) and South African Rand (ZAR). This article provides a simple overview of the dividend amounts, taxes, exchange rates, and key dates that regular shareholders should know.
Richemont SA has recommended that shareholders receive a dividend of CHF 2.50000 per ‘A’ share from their income reserves. In addition, a special dividend of CHF 1.00000 per ‘A’ share has been proposed. These dividends will be confirmed by the shareholders of Richemont SA at their annual general meeting on September 6, 2023, in Geneva, Switzerland.
Taxes on Dividends
The dividends paid by Richemont SA are subject to a Swiss withholding tax of 35 percent. This means that after the tax is deducted, shareholders will receive a net dividend of CHF 1.62500 and CHF 0.65000 per ‘A’ share. However, South African tax residents can get back 20 percent of the Swiss withholding tax they paid on the Richemont SA dividend.
Revised South African Dividends Tax Rate
The South African government has increased the dividends tax rate from 15 percent to 20 percent. To accommodate this change, shareholders who are not exempt from the South African dividends tax will now pay a reduced tax rate of 5 percent. This is because they can claim a credit for the Swiss withholding tax they have already paid. Shareholders who are exempt from the South African tax (such as South African companies and non-residents of South Africa) need to complete exemption forms with their brokers or banks to ensure they don’t pay any South African tax.
Exchange Rate and Payment Dates
The exact exchange rate for converting Swiss Francs (CHF) to South African Rand (ZAR) will be announced separately on Tuesday, September 12, 2023. The dividend payment process will follow these dates:
- Finalisation date: By 11:00 AM on Tuesday, September 12, 2023
- Last date to trade “cum dividend”: Tuesday, September 19, 2023
- Trading commences “ex-dividend”: From the start of business on Wednesday, September 20, 2023
- JSE share record date: Friday, September 22, 2023
- JSE share dividend payment date: Thursday, September 28, 2023
Restrictions and Share Program Administration: Between September 20 and September 22, 2023, shareholders will not be able to buy or sell their shares or transfer shares to or from South Africa. Richemont SA may work with other parties to handle the share program and may share relevant information about the shareholders with those parties.