Old Mutual to pay out final dividend to shareholders, ‘but beware the tax bite’

Old Mutual shareholders are in line for a payout, with the company declaring a final dividend of 49 cents per share. The amount one receives will, however, depend on where they live and their tax situation.

The dividend will be paid on April 22nd for most shareholders, with those on the London Stock Exchange receiving theirs a month later on May 21st.

South African shareholders will see a 20% withholding tax applied, leaving them with 39.2 cents per share. International shareholders face the same tax rate unless they qualify for a reduced rate under a double taxation agreement with South Africa.

For shareholders in Zimbabwe, the dividend will be paid in US Dollars, while those on the London, Malawian and Namibian registers will receive the equivalent in their local currencies.

Old Mutual recommends shareholders, particularly those outside of South Africa, consult with a tax advisor to understand any potential withholding taxes in their home country.

The company has also provided a declaration form for non-South African taxpayers to claim a reduced tax rate, if applicable.

“Shareholders on the London, Malawian and Namibian registers will be paid in the local currency equivalents of the final dividend. Shareholders on the Zimbabwean register will be paid the equivalent of the final dividend in United States Dollars (USD).

“Distributions made through the dividend access trust or similar arrangements established in a country will not be subject to South African withholding tax but may be subject to withholding tax in the relevant country.

“We recommend that shareholders consult with their tax adviser regarding the in-country withholding tax consequences,” the company said.

“Shareholders that are tax residents in jurisdictions other than South Africa may qualify for a reduced rate under a double taxation agreement with South Africa.

“To apply for this reduced rate, non-South African taxpayers should complete and submit a declaration form to the respective registrars. The declaration form can be found at:https://www.oldmutual.com/investor-relations/dividend-information/”