#Israel #Cash Dividend #ZIM Integrated Shipping #Withholding Tax #Haifa

ZIM Integrated Shipping Services' Withholding Tax Procedures

On March 20, 2025, ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) announced updates regarding the withholding tax procedures for its anticipated dividend distribution scheduled for April 3, 2025. These updates are crucial for investors and shareholders planning to manage their tax liabilities effectively within the complexities of international investing.

Dividend Overview

Earlier on March 12, 2025, ZIM had declared a dividend of $3.17 per ordinary share, amounting to around $382 million intended for distribution to shareholders holding ordinary shares by March 24, 2025. The upcoming payout date sees a significant portion of the dividend subject to withholding tax regulations enforced by the Israeli Tax Authority (ITA).

Tax Ruling and Eligibility for Reduced Withholding Tax Rate

The update brings attention to a prior ruling obtained from the ITA. This ruling outlines potential eligibility for specific shareholders who may benefit from a reduced withholding tax rate rather than the general rate of 30% for substantial shareholders or 25% for other ordinary shareholders. It's vital to note that these conditions apply only to shareholders who meet certain criteria set forth in the ruling.

Key Terms of the Ruling

1. Withholding Rates: On the payment date, a 25% withholding tax will be deducted from the dividend, leaving 75% to be distributed to the shareholders.
2. Application for Reduced Tax Rate: Eligible shareholders, including those residing in treaty countries or non-treaty jurisdictions, must submit their requests for the reduced withholding tax rate to the appointed agent, IBI Trust Management, within a specified period—between the payment date and May 5, 2025.
3. Documentation Requirements: Shareholders must provide various documents to claim the reduced rate, including confirmation of their ownership and residence, tax declarations, and financial details for the dividend transfer.
4. Agent Responsibilities: IBI Trust Management has been appointed to coordinate these procedures on behalf of shareholders but will not provide tax advice—shareholders are strongly encouraged to consult their financial advisors for specific situations.

Important Dates and Forms

To ensure compliance and receipt of any refunds that may be due, shareholders need to submit all required documentation by May 5, 2025. The necessary forms are accessible through a dedicated link provided by the company. Additionally, any shareholder failing to comply with the documentation submission requirements may forfeit their opportunity to receive the refund or reduced tax rate benefits.

Conclusion

As ZIM prepares for the dividend payment amidst these tax considerations, it remains essential for investors to stay informed of their obligations and the latest tax regulations. With an emphasis on maintaining clear communication, ZIM continues to facilitate processes that benefit its shareholders while navigating the complex landscape of international tax regulations. For further guidance, shareholders are encouraged to contact ZIM's appointed tax agent or their financial advisors regarding the implications of these updates and how best to act moving forward.

For more details on the dividend declaration and procedures, please visit ZIM's official website or reach out to IBI Trust Management at the provided contact details. This proactive approach not only aids in maximizing shareholder value but also ensures compliance with local and international tax standards.