#Israel #Dividend #ZIM Integrated Shipping #Haifa #witholding tax

ZIM Announces Updates on Withholding Tax Procedures

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), a major player in global container shipping, has recently provided updates concerning the withholding tax procedures that will apply to the cash dividend expected on March 26, 2026. This announcement follows a prior notification made on March 9, 2026, regarding a dividend distribution of $0.88 per ordinary share, summing up to approximately $106 million intended for shareholders who are registered as of March 20, 2026.

The company has confirmed that an existing tax ruling from the Israeli Tax Authority (ITA) will be relevant for this dividend distribution. As a consequence of this ruling, certain shareholders may qualify for a reduced withholding tax rate, compared to the standard rate applicable to most shareholders.

Understanding the Withholding Tax Rates

According to Israeli law, the current withholding tax rates for dividends are typically set at 30% for substantial shareholders—those who own more than 10% of the company's shares—and 25% for ordinary shareholders. However, the recent ruling introduces possibilities for a reduced tax rate, contingent upon meeting specific conditions outlined in the ruling.

It is crucial to note that this update is primarily focused on outlining the tax procedures and does not provide a detailed assessment of shareholders' actual tax liabilities. Shareholders are advised to seek professional advice regarding their individual tax circumstances, especially in relation to the laws applicable in their respective jurisdictions.

Key Terms Related to the Ruling

To benefit from potentially reduced withholding tax rates, shareholders must comply with several prerequisites set forth by the ruling:

• - Submission of Documentation: Shareholders will need to provide necessary documentation to the appointed tax agent, IBI Trust Management, by May 7, 2026. This includes declarations regarding tax residency and beneficial ownership of the dividends.
• - Tax Treaties: Shareholders residing in countries with tax treaties with Israel may apply to the agent for a reduced tax rate on the dividends. These applications must be made during a designated time frame after the payment date.
• - Payment Process: On the dividend payment deadline, ZIM will withhold 25% of the dividend amount to remit to the tax authority, while the remaining 75% will be distributed to shareholders through their transfer agent.

Shareholder Advisory

ZIM has stressed the importance for shareholders to consult their tax advisors to navigate the complexities associated with the withholding tax. Moreover, the appointed agent will not provide tax advice, leaving it imperative for shareholders to understand their personal tax obligations.

To facilitate access to the necessary forms and comply with the ruling requirements, ZIM has provided relevant links and contact details for its designated agent at the end of its announcement. Shareholders are encouraged to reach out if they need assistance with the documentation process.

Conclusion

As the preparation for the March 2026 dividend continues, ZIM remains committed to compliance with applicable tax laws and ensuring a smooth distribution of dividends to its shareholders. The introduction of a reduced withholding tax rate could offer significant tax benefits, enhancing shareholder value across the board. However, adhering to the established guidelines is essential for shareholders seeking to qualify under the reduced rate provisions.

For further details on the ruling and to access required forms, shareholders can visit the ZIM official website or contact IBI Trust Management directly. As the situation unfolds, ZIM is dedicated to keeping its shareholders informed and engaged in the dividend distribution process.