NEPI Rockcastle N.V. has capped off the 2024 financial year on a strong note by declaring a final dividend of 27.05 euro cents per share, maintaining a robust 90 percent payout ratio. While this underscores the company’s confidence and solid performance, how much shareholders actually pocket depends largely on one key factor: tax treatment.
Capital Repayment vs. Cash Dividend: Two Routes, Different Results
Shareholders were presented with two options for receiving the dividend:
- Capital Repayment (default option): Treated as a return of capital, with no Dutch withholding tax (WHT).
- Cash Dividend (elected option): Paid out of distributable profits, subject to 15 percent Dutch dividend WHT. Depending on the investor’s local tax laws, additional withholding tax may apply in their country of residence.
This decision is not just administrative—it has a tangible financial impact. Those who did not actively make a choice were automatically assigned the capital repayment.
What Shareholders Actually Received
For shareholders on the Johannesburg Stock Exchange or A2X, the 27.05 euro cents per share converted to R534.52342, using the average exchange rate of EUR1.00 = ZAR19.76057.
The final net distribution, however, depended on the selected option:
- Capital Repayment: R534.52 per share, with no WHT. This reduces the investment’s base cost, potentially triggering higher capital gains tax when the shares are sold.
- Cash Dividend: Also grossed at R534.52342 per share, but investors received only R400.89 after 15 percent Dutch WHT.
Investors in other countries will experience different results depending on their local laws and any applicable tax treaties.
Maximizing Your Dividend: Why Expert Help Matters
Navigating WHT reclaims across borders is rarely straightforward. This is where Global Tax Recovery comes in:
- Files refund claims with the Dutch tax authority on behalf of investors.
- Coordinates local filings to recover excess tax under treaty provisions.
- Manages cross-border compliance requirements with precision.
- Tracks statutory deadlines and handles the entire administrative burden.
Whether you are based in London, Frankfurt, New York, or Johannesburg, expert support ensures you reclaim what is rightfully yours—without the red tape.
Final Thoughts
NEPI Rockcastle’s dual-structure dividend offers welcome flexibility—but in international investing, it is not about what is declared, it is about what you keep.
For globally diversified investors, understanding the tax implications—and acting on them—is key to maximising returns.
Have questions about your NEPI Rockcastle dividend or the tax reclaim process?
Contact Global Tax Recovery today.
