How do I fill in an A/114 form to apply for reduced Israel dividend tax?

16th Mar '17 by David Cheong

57 comments 21747 reads

Hi,

I own some Plus500 shares which went ex-dividend on 3 March. I am trying to apply for a reduced tax rate on the dividends, which involves filling in the form A/114 and sending it to the Israeli Tax Authorities. However, I have no idea how to fill in certain portions like :

For Part F, 'Documentation':
- What Documentation do I need to attach alongside the form A/114?

PART H: CERTIFICATION OF FOREIGN INCOME TAX AUTHORITY (This part shall be completed and signed by the Income Tax Authorities of the recipient’s place of residence)
- how do i get the UK tax authorities to fill this part in and sign it off ?

This is my first time filling in this form and I am unsure what the process is like. Do i just fill in the form, attach whatever documentation and send it off straight to the Israeli Tax Authorities?

If anyone has done so before please let me know! I will greatly appreciate any help.

Thanks.

David

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lightningtiger

20th Jul '17

Good news that you have at long last received your dividends. Bad news, I am still awaiting my 10% tax back. I will phone ESOP tomorrow and find out what the hold up is.after leaving them another e-mail now.

21st Jul '17

After 3 try's phoning ESOP and getting these frustrating automated replies was unable to contact Moshe, so left a message for him to contact me.Also sent another e-mail to try and establish the payment date. I was not impressed with their service.
So it is another waiting game, for how much longer I have no idea.

23rd Jul '17

Success at last. 9;46AM Sunday 23rd July 2017, which is a working day for people in Israel, confirmation from Moshe at ESOP that all paperwork has been received and the 10% tax refund will now be processed.. Still no idea what his extension number is and have even contacted the compliance officer for Plus 500 who did not want to know.
I do have 2 qualities, one is persistence and the other is that I am stubborn.In this occasion the persistence has paid off and being stubborn sometimes can be a bad thing. The other thing is patience which too has it's limits and sometimes causes us to give up in trying to get things sorted out. Anyway sorted at long last.
Time for a glass of Baron De Ley 2010, Cheers. Thanks for your help again abtan.

abtan

9th Aug '17

Received an email from ESOP this morning:

"Dear Shareholder,

Thank you for filing a claim via ESOP.
please note, we are scheduled to receive the final approval for the refund by 15.8.2017
in accordance we will wire the refunds as expected.

We appreciate your cooperation"

No email from ESOP yet 9/8/17. I assume it will take a while longer to actually get payment.
The other question is , do we have to go through all this again for the next dividend payment later this year? or just confirm the number of shares held XD?

I emailed them a few days ago, hence the response. I don't think they email anyone of their own accord.

I don't think the process is as complicated if you have a letter from HMRC in the same year, but one to check with ESOP

Thanks Abtan , just sent a chase up e-mail to ESOP and put the question to them regarding the next dividend payment assuming confirmation of shares held on the XD day should be sufficient.
Another waiting game, hopefully we will get paid before the next full moon!
Meanwhile the share price is still climbing which is good news.

10th Aug '17

Now have received e-mail from ESOP confirming payment should be made by the end of next week. The next dividend payment will only need confirmation of shares on XD day held has also been confirmed.
Just for the record the date today is 10/8/17, so payment should be on 18/8/17.
Hope you are OK for payment too David.

Howard Adams

Hi all

Many thanks for all these useful comments and instructions.

I was not aware of this requirement at all.

I do not hold Plus500 (LON:PLUS) but I hold Taptica International (LON:TAP) can anyone tell me if this situation also applies to Taptica International (LON:TAP) and AIM listed Israeli firm?

Regards
Howard

David Cheong

Yes i believe you would ; see http://www.taptica.com/wp-content/uploads/2017/03/Dividend-Declaration-31-March-2017.pdf.

I own Taptica shares as well but I don't own that much that it warrants my time to do it.

11th Aug '17

David

Many thanks for this. I'll follow your approach as its only a small holding for me as well.

Regards
Howard

Dexx the Dog

As someone that hates forms, there is in theory another option.

Sell the day before the shares go ex-Divi and buy back the next day. There is no stamp duty to worry about, just dealing fees plus the uncertainty of any non-dividend related price movements.

Also have the opportunity to top slice or top-up.

Regards,

Andy

Andy

That's an option I had not considered. Thanks for the idea.

Regards
Howard

If you sell before XD day you will not get the dividend payment. Better to buy on XD day & top up then, when the share price drops a bit to allow for the dividend payment and when you get a decent profit later on you can top slice then,assuming the share price has risen.

rpannell

13th Aug '17

Excellent idea. With the difference in tax rates between CGT (lower) and dividends (higher), the tax saving may cover the buy sell costs.

30th Aug '17

Paid at last on 29th August. This has taken an age to complete , but for all the other people waiting I trust it will be worth it for you. This has been an experience to accomplish this extra tax refund to say the least. Thank you all for your help in making this happen. Having done this once getting all the papers and documents sent and accepted, the next payment will be much easier simply by letting ESOP know how many shares you hold on XD day which is 7th September 2017.

6th Sep '17

Does anyone here know when the $27m Share buyback program begins? The first one ($10 million) concluded sometime in August.

Source :https://www.ft.com/content/e8afa00c-e43f-3b63-b8e7-9eb35913b1df

It began on 4th August to 1st Feb 2018 for > 27.2M shares. Figures from Plus500 site, Investor Presentation page 27. Also worth noting this imminent dividend XD 7/9/17 $27,200M payout is about 20p with tax refund and they estimating paying out a total dividend for 2017 of $139M, so that means another final dividend of $36.8M , about 27p a share with tax refund. ($75M + $$27,200 = $102,200 paid so far from total of $139M.
Who else has got the Tax refund back? Surely I am not the only one out there that has got it!

8th Sep '17

thanks. strange there has been no updates on their end (rns wise) regarding the daily buybacks. plus500 used to do daily updates for the previous $10m buyback round.

How do I fill in an A/114 form to apply for reduced Israel dividend tax?

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David Cheong

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