ZIM's Certain Shareholders Eligible For Reduced Israeli Withholding Tax Rate On Special Dividend

ZIM Integrated Shipping Services Ltd. ZIM has secured a tax ruling from the Israeli Tax Authority (ITA) with respect to the tax withholding procedures relating to the payment of dividend expected to take place on September 15, 2021.
Previously the company had announced a dividend of $2.00 per share (~$238 million), payable September 15, with a record date of August 25, and trades ex-dividend on August 24, 2021.
The Ruling suggests certain Shareholders may be eligible to a reduced Israeli withholding tax rate for their share of this dividend distribution, compared to the generally applicable withholding tax rate.
Under the Israeli Tax Ordinance and regulations issued under the Israeli Tax Ordinance, the rate of withholding tax on dividends paid by an Israeli company is 30% for distributions to a "substantial shareholder" and 25% for distributions to all other holders of Ordinary Shares.
Price Action: ZIM shares are trading higher by 5.47% at $48.59 on the last check Monday.

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