TRMR.L Regulatory News (TRMR)

20 April 2018

Taptica International Ltd

("Taptica" or the "Company")

Dividend Declaration

On 26 March 2018, Taptica (AIM: TAP), a global end-to-end mobile advertising platform for advertising agencies and brands, announced its full year results and declared a final dividend of $0.054 per ordinary share out of the Company's net profits for the twelve months ended 31 December 2017, with an ex-dividend date of 19 April 2018, a record date of 20 April 2018 and a payment date of 19 June 2018.

As further described below, the record and payment date allow for shareholders who are not Israeli tax residents to apply for, and benefit from, a reduced withholding tax rate.

Withholding Tax Rate

With respect to dividends sourced from "Preferred Enterprise" as defined under the Israeli Tax Ordinance and regulations, the current Israeli rate of withholding tax for qualifying industrial income paid by an Israeli company, which applies to Taptica, is subject to 20% withholding tax.

Entitlement of Non-Israeli Tax Residents to Reduced Rate of Withholding Tax

Shareholders or holders of depositary interests in respect of ordinary shares in the Company who are residents of a country with a tax treaty with Israel, such as the UK, are eligible to benefit from a reduced withholding tax rate ("Eligible Shareholder"). To benefit from a reduced withholding tax rate, Eligible Shareholders must apply to the Israel Tax Authority (the "ITA") and obtain from the ITA a certificate for a reduced withholding tax rate as set in the applicable tax treaty (the "Certificate"). 

Under the Double Taxation Treaty between Israel and the UK (the "UK Treaty"), a shareholder or depositary interest holder who is a British tax resident (and does not have a permanent establishment in Israel) who holds less than 10% of the rights of the Company and such dividend income is subject to tax in the UK, is entitled to a reduced withholding tax rate of 15% (the "Reduced Withholding Tax Rate"), provided the Eligible Shareholder submits a duly issued Certificate by 21 May 2018.

An Eligible Shareholder may obtain a Certificate by submitting to the ITA a completed ITA Form A/114 (titled "Claim for Reduced Rate of Withholding Tax/Exemption from Withholding Tax in Israel for Non-Residents Form") and any additional information or documents that may be requested by the ITA. The Form A/114 can be found on the ITA website at https://taxes.gov.il/English/TaxesFormsList/itca114.pdf.

To assist Eligible Shareholders with the process of applying to the ITA to obtain a Certificate in order to benefit from the Reduced Withholding Tax Rate, the Company has obtained a special tax ruling (the "Tax Ruling") from the ITA. According to the Tax Ruling, IBI Capital Compensation and Trusts (2004) Ltd. was appointed to serve as a processing agent for the benefit of Eligible Shareholders (the "Agent"). Accordingly, Eligible Shareholders can approach the Agent within the required time and provide the required documentation and declarations as was set in the Tax Ruling ("Documentation and Declarations") in order to be entitled to receive the Reduced Withholding Tax Rate from the dividend according to the tax treaty between their country of residency and Israel. Eligible Shareholders should contact the Agent, via the contact information at the bottom of this announcement, for additional information; if any assistance is required in obtaining a Certificate; or if they have any questions concerning the process.

An Eligible Shareholder must present all the required Documentation and Declarations or valid Certificate to the Agent no later than 21 May 2018 in order to benefit from the Reduced Withholding Tax Rate. Accordingly, if all the required Documentation and Declarations or a valid Certificate is presented to the Agent before 21 May 2018, it is expected that the Company would be able to reimburse the difference between the applied Withholding Tax rate at the time of payment of the dividend and the Reduced Withholding Tax Rate, if applicable.

If the Documentation and Declarations or the valid Certificate is not provided to the Agent by 21 May 2018 the Company would be required to withhold tax from the dividend according to the rates set out above without taking into account the Reduced Withholding Tax Rate.

Shareholders are advised to consult with their own personal tax and financial advisers as to the tax consequences resulting from their personal tax situation.

Taptica's Agent Contact Information:

IBI CAPITAL COMPENSATION AND TRUSTS (2004) LTD

Tel: +972-3-9282

Fax: +972-3-685-3773

Email: sop@IBI.co.il

For further details:

About Taptica

Taptica is a global end-to-end mobile advertising platform that helps the world's top brands reach their most valuable users with the widest range of traffic sources available today, including social. Its proprietary technology leverages big data and, combined with state-of-the-art machine learning, enables quality media targeting at scale. Taptica creates a single arena in which brands can scale and engage more relevantly with mobile audiences, staying ahead of the competition. It works with more than 600 advertisers including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, Lyft and Zynga. Taptica is headquartered in Israel with offices in San Francisco, New York, Tokyo (Adinnovation), Beijing, Seoul and London. Taptica is traded on the London Stock Exchange (AIM: TAP).