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ZIM Provides Updates on Withholding Tax Procedures for September 2025 Cash Dividend

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), a prominent player in global container liner shipping, has recently provided key updates regarding the withholding tax procedures associated with its upcoming cash dividend slated for September 9, 2025. As previously announced on August 20, 2025, the company plans to distribute a dividend of $0.06 per ordinary share, aimed at rewarding its shareholders.

Details of the Distributions

The anticipated dividend distribution, estimated at approximately $7 million, is significant for both the company and its shareholders. In conjunction with this distribution, ZIM has secured a tax ruling from the Israeli Tax Authority (ITA), which will administer the relevant withholding tax procedures. This ruling applies specifically to the dividend payments scheduled to be disbursed to shareholders, and it introduces the potential for certain stockholders to benefit from a reduced withholding tax rate.

Under normal circumstances, the rate of withholding tax on dividends issued by Israeli companies stands at 30% for substantial shareholders—typically those holding at least 10% of a company's control rights—and 25% for other shareholders. However, due to the newly obtained ruling, shareholders may qualify for a reduced rate, should they meet specified conditions outlined by the company.

Key Terms of the Ruling

The company emphasizes that this announcement does not serve as a comprehensive guide on withholding tax matters, urging shareholders to seek advice from their tax and financial advisors. To qualify for the reduced withholding tax rate, stockholders must adhere to all the substantial terms of the ruling, which include:

• - On the payment date, ZIM will withhold 25% of the dividend and remit this tax amount to the agent appointed for managing these procedures.
• - Shareholders residing in countries that have a tax treaty with Israel are eligible to apply for a reduced tax rate through the appointed agent, provided the application is submitted within the specified period.
• - All relevant documentation must be furnished by October 8, 2025, to facilitate any adjustments on the tax amount withheld.

Application Process

Shareholders interested in applying for the reduced withholding tax rate should prepare to present the requisite documents, which include proof of tax residency, bank details for the dividend payment, and confirmation of share ownership. Diverse categories of shareholders, whether individual or corporate, are guided to follow distinct procedures set forth in the ruling. This meticulous documentation is crucial, as failure to comply may result in an inability to process the shareholder's application for a tax reduction or refund.

Additionally, any shareholder with holdings exceeding 5% of the issued share capital or entitled to dividends surpassing $500,000 may face restrictions unless specific exemptions are applied.

The Role of the Agent

ZIM has designated IBI Trust Management as the processing agent for this operation, facilitating the smooth execution of the required procedures tied to the tax ruling. Shareholders are encouraged to reach out to the agent for assistance with any queries or challenges related to the application forms, although it's important to note that the agent will not offer tax advice.

Conclusion

The developments provided by ZIM offer critical insights into the taxation landscape surrounding their dividends. Shareholders are reminded of the importance of timely and accurate documentation, ensuring they are aligned with the necessary guidelines for the potential benefits associated with the reduced withholding tax rates. For comprehensive information and assistance, ZIM has made available forms and additional resources on their website and through the appointed agent.

For further details on ZIM’s operations and updates, visit their official website at www.ZIM.com.