Plus500 Receives Favorable Shareholder Withholding Tax Ruling from Israel Tax Authority
- Providing an easier solution for non-Israeli citizens to be subject to reduced withholding tax rates, Plus500 has announced a tax ruling it has received from the ITA to benefit the broker's shareholders.
Among individual investors of Plus500, especially those in the UK, where shares of the broker trade on the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term dealing with withholding taxes on dividend distributions has been an issue. As an Israeli-founded company, dividends issued by the broker are subject to the country’s 30% withholding tax. Non-citizens though, with tax treaties with Israel are able to receive a reduction on the tax rates depending on their country’s rules. In the case of UK investors, with which the country has a tax treaty with Israel, and a withholding tax rate of 15%, they are an entitled to receiving a refund on taxes initially collected on dividends. However, the process involves interaction with the Israel Tax Authority to receive the refund. For individual holders, the process adds an extra element of friction in collecting their full dividend distribution.
Per previous reports by Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates of an impending ease in the process for non-Israeli shareholders, Plus500 announced today that it has received a favorable withholding tax ruling from the ITA. According to the terms of the ruling, shareholders entitled to a reduced withholding tax rate will be able to sidestep their direct dealings with the ITA, and submit forms to ESOP Management & Trust Services Ltd which was appointed to serve as a processing agent for the benefit of the investors. While shareholders will continue to be required to submit documentation to identify their ownership as not subject to the ITA’s 30% withholding tax, the ruling provides Plus500 shareholders the ability to deal directly with ESOP, specializing in stock and options related activity, instead of opening dialogue with a foreign government tax office. Also, the ruling allows for shareholders to receive the tax immediately upon the issuance of the dividend distribution, without the need of retroactively claiming a refund.
Beyond the broker’s stellar top and bottom line growth it has exhibited since becoming a public company last year, is Plus500’s large percentage of its profits being distributed to shareholders in the form of a dividend. As a result, the dividend has been an important factor of driving retail oriented demand for Plus500’s shares.
Among individual investors of Plus500, especially those in the UK, where shares of the broker trade on the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term dealing with withholding taxes on dividend distributions has been an issue. As an Israeli-founded company, dividends issued by the broker are subject to the country’s 30% withholding tax. Non-citizens though, with tax treaties with Israel are able to receive a reduction on the tax rates depending on their country’s rules. In the case of UK investors, with which the country has a tax treaty with Israel, and a withholding tax rate of 15%, they are an entitled to receiving a refund on taxes initially collected on dividends. However, the process involves interaction with the Israel Tax Authority to receive the refund. For individual holders, the process adds an extra element of friction in collecting their full dividend distribution.
Per previous reports by Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates of an impending ease in the process for non-Israeli shareholders, Plus500 announced today that it has received a favorable withholding tax ruling from the ITA. According to the terms of the ruling, shareholders entitled to a reduced withholding tax rate will be able to sidestep their direct dealings with the ITA, and submit forms to ESOP Management & Trust Services Ltd which was appointed to serve as a processing agent for the benefit of the investors. While shareholders will continue to be required to submit documentation to identify their ownership as not subject to the ITA’s 30% withholding tax, the ruling provides Plus500 shareholders the ability to deal directly with ESOP, specializing in stock and options related activity, instead of opening dialogue with a foreign government tax office. Also, the ruling allows for shareholders to receive the tax immediately upon the issuance of the dividend distribution, without the need of retroactively claiming a refund.
Beyond the broker’s stellar top and bottom line growth it has exhibited since becoming a public company last year, is Plus500’s large percentage of its profits being distributed to shareholders in the form of a dividend. As a result, the dividend has been an important factor of driving retail oriented demand for Plus500’s shares.