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Business News of Tuesday, 19 May 2020

Source: MyNigeria

Seplat subjects dividends to withholding tax, explains reasons why

Seplat Petroleum Development Company Plc has announced a new dividend regime.

In a notice by the firm to the Nigerian Stock Exchange, it explained that its dividends paid out to shareholders would now be subjected to Withholding Tax.

This is applicable to shareholders in Nigeria under the Finance Act of 2020.

It explained that the dividend of US$0.05 will be subject to a WHT rate of 10%.

While shareholders that are tax resident in countries with a Double Tax Treaty (DTT) like Nigeria, would receive a reduced rate of 7.5% WHT.

It further advised Shareholders from treaty nations to notify the Company’s registrars that they are subject to the lower WHT by filling and submitting the qualification form available on the Company website by May 27 2020.

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