Dividend WHT through HL reply today29 Apr 2022 16:49
Thank you for contacting Hargreaves Lansdown.
My apologies for the delay in getting back to you, we were waiting for a full answer from Computershare before we wrote out.
We are writing to you with reference to the first Thungela Resources Ltd dividend that will be paid on 09 May 2022. We are aware of the possibility of having all dividends paid at source after the deduction of 10% South African withholding tax instead of the usual 20%.
Hargreaves Lansdown holds a nominee account on behalf of numerous clients. As an investor you are still the beneficial owner of the shares, but your holding is not ‘individually identifiable’ on the Thungela Resources Ltd company register.
After various conversations with the registrar Computershare, we were able to download the tax form from their South African website. We have reviewed this form and have concluded that as Hargreaves Lansdown are simply the holder of the Nominee account, we are unable to complete this form on behalf of our clients. A view confirmed by the technical team at Computershare also.
The form is designed to be completed by the beneficial owner(s) of the share and not a Nominee company, such as Hargreaves Lansdown, which holds the stock on behalf of numerous clients. As your holding is not ‘individually identifiable’ on the Thungela Resources Ltd Company register, it is not possible for you to complete the form either, in order to benefit from the reduced rate of withholding tax.
It is regretful that we have been unable to apply for the reduced withholding tax rate for this stock, but we trust you can appreciate why this is the case.
To confirm, all dividends will be paid net of the standard 20% withholding tax going forward.
If you have any further queries in this respect, please do not hesitate to contact the Dividends Department.
Yours sincerely
Dividends Department
Hargreaves Lansdown
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