#Israel #ZIM Integrated Shipping #Withholding Tax #Haifa #dividend distribution

ZIM Updates on Withholding Tax Procedures

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) has recently issued an important update regarding the withholding tax procedures applicable to its upcoming cash dividend, scheduled for distribution on December 8, 2025. This announcement reiterates details previously shared on November 20, 2025, wherein the company confirmed a dividend payment of $0.31 per ordinary share, which amounts to approximately $37 million for shareholders holding ordinary shares as of December 1, 2025.

As per the guidelines laid out by the Israeli Tax Authority (ITA), this dividend payment will be subject to certain withholding tax rates determined by existing agreements and shareholder classifications. Specifically, shareholders may qualify for a reduced withholding tax rate, which may be lower than the standard rates of 30% and 25% usually applicable in Israel depending on the shareholder's status as a substantial shareholder.

The detailed procedures for claiming this reduced rate are highlighted below, but it is crucial for shareholders to seek personalized advice from tax professionals to understand the tax implications that pertain to their unique situations.

Key Highlights of the Tax Withholding Ruling

1. Estimated Tax Rates: As a general rule, dividends from an Israeli company are subject to a withholding tax of 30% for substantial shareholders and 25% for other shareholders. The recent ruling, however, introduces potential eligibility for a reduced tax rate under specific conditions.
2. Documentation Requirements: Shareholders looking to apply for the reduced withholding tax rate must submit all necessary documentation to the appointed Agent, IBI Trust Management, no later than January 8, 2026. The required documentation includes proof of residency, identification documents, and details concerning the ZIM shares owned.
3. Application Period: To benefit from the reduced withholding tax rate, applications must be made during a designated period known as the Change of Rate Period, which spans from the payment date to January 8, 2026.
4. Refund Procedures: Shareholders who have undergone withholding at the standard rate may apply for refunds on their tax payments provided they can offer sufficient documentation and proof of eligibility for a reduced rate under the tax treaty agreements.
5. Agent Role: IBI Trust Management has been retained to manage these processes and coordinate between ZIM and its shareholders. However, it is imperative to note that IBI will not offer tax advice, and shareholders are urged to consult their financial advisors.

What Shareholders Should Do

Shareholders should prepare to gather the necessary paperwork and contact the appointed Agent to ensure they comply with all conditions set forth in the Ruling. For more information on the documentation needed and the application process, stakeholders can visit ZIM's official website or contact IBI Trust Management directly.

ZIM emphasizes that this ruling pertains solely to tax withholding procedures and does not determine or define an individual shareholder's tax liability regarding this or any other dividend distribution.

Conclusion

As ZIM Integrated Shipping Services proceeds with its dividend distribution, the company remains dedicated to providing clear communication and support to its shareholders regarding tax implications. As global shipping and logistics continue to evolve, this proactive approach not only helps in managing shareholder expectations but also aligns with ZIM's commitment to transparency and regulatory compliance in all its operations.

For those interested in ZIM’s operations or who wish to understand the implications of this ruling in more detail, additional resources can be found on the ZIM website.