PHOTO
Saudi Basic Industries Corp. (SABIC), the world’s fourth-biggest petrochemical firm, is planning to hand out 4.5 million Saudi riyals ($1.2 million) in cash dividends to its shareholders.
The company’s board has recommended the payout for the second half of the year, the firm said in a bourse filing on Wednesday.
About three billion shares will be eligible to receive the dividend, pegged at 1.5 riyals per share. The proposed dividend represents 15 percent of the share’s par value.
“The eligibility of cash dividend will be to shareholders who own the company shares on the eligibility date and enrolled in the company’s register at the Securities Depository Centre for Company (Edaa) by the end of the second trading day of the day of the General Assembly of the company, which will be announced later,” the firm said.
The date of the distribution has yet to be fixed.
The firm also advised that the dividend will be subject to a 5 percent withholding tax, if paid to non-resident investors.
This is according to the provisions of Article (68) of the Income Tax Law and Article (63) of its implementing regulations, SABIC said.
“The dividend paid by the company is subject to a withholding tax of 5 percent upon transfer to non-resident investors or credit to their bank accounts, according to for the second half of the year.
(Writing by Cleofe Maceda; editing by Mily Chakrabarty)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2020
