SBV/SVN - Sabvest - No Immediate Effect of New Tax on Dividends
SBV SVN
SBV
SBV/SVN - Sabvest - No Immediate Effect of New Tax on Dividends
SABVEST LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1987/003753/06
ISIN: ZAE000006417 - ordinary shares
ISIN: ZAE000012043 - "N" ordinary shares
Share code: SBV - ordinary shares
Share code: SVN - "N" ordinary shares
("Sabvest" or "the Company")
NO IMMEDIATE EFFECT OF NEW TAX ON DIVIDENDS
Sabvest shareholders may be aware that Secondary Tax on Companies ("STC") is to
be replaced by a 10% Withholding Tax on dividends with effect from 1 April 2012.
The Board is pleased to advise shareholders that their distributions will not be
affected by this change in the immediate future for the following reasons:
* The 2011 final dividend should be paid in March 2012 before the effective date
of the new tax.
*In terms of the transition provisions the Company may apply accumulated
unutilized STC credits to offset the payment of the new dividend tax for a
period of five years. As the Company has unutilized STC credits of over R115m
(unaudited) at 31 December 2011 (2010: R108m audited), the Company does not
expect that there will be any dividend tax withheld from dividends to
shareholders during the transition period of five years. Shareholders are
advised that to the extent that this constitutes a dividend forecast, it has not
been audited or reported on by the Company`s auditors.
The Company`s CSDP and transfer secretaries will be advised accordingly.
Sandton
17 January 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/01/2012 12:44:52 Produced by the JSE SENS Department.
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