Partner Communications Announces an Approval from the Israeli Tax Authority Regarding the Tax Withholding of The Dividend Dis...
March 18 2010 - 3:30AM
Business Wire
Partner Communications Company Ltd. ("Partner" or "the
Company") (Nasdaq:PTNR) (TASE:PTNR), a leading Israeli
communications operator, announced today that Further to the
company's press release dated February 22, 2010 regarding the
dividend distribution in cash in the amount of NIS 1.4 Billion
(9.0407764 NIS per share) ("the Total Distribution Amount"), the
company received today an approval from the Israeli Tax Authority
dated March 18, 2010 ("the "Approval"), according to which the tax
withholding of the Total Distribution Amount shall be as
follows:
1. An amount of NIS 7.7298638 per share ("the Capital
Distribution Amount") (from the Total Distribution Amount) shall be
subject to tax withholding according to the withholding rates
applicable under Income Tax Regulations (Withholding from
Consideration, Payment or Capital Gain upon the Sale of Security,
the Sale of Mutual Fund Unit, or Future Transaction) 5763 – 2002
("Withholding Regulations"), without taking into account for this
purpose cost or original price.
Accordingly and in line with the Approval, the following tax
rates shall be withheld from the Capital Distribution Amount:
Israeli resident individuals – 20%; Israeli resident companies –
25%. Notwithstanding the above, in case that a valid permit from
the Israeli Tax Authority regarding the distribution and/or a valid
permit according to the Withholding Regulations regarding tax
withholding is presented by any of the Company's shareholders, tax
will be withheld from the Capital Distribution Amount paid to such
shareholder in accordance with such permit. With respect to foreign
residents of countries which have tax treaties with Israel
regarding the prevention of double taxation, and that have signed
form 2402, tax will be withheld from the Capital Distribution
Amount according to the relevant treaty provisions in respect of
capital gains. With respect to shares held by Tel Aviv Stock
Exchange (TASE) members, the Company will transfer to such TASE
members the gross amount of the Capital Distribution Amount and the
tax withholding from the Capital Distribution Amount shall be made
by the TASE members.
The tax withholding with respect to shares held by shareholders
registered in the Company's shareholders' registry the tax
withholding from the Capital Distribution Amount shall be made by
the Company.
2. An amount of NIS 1.3109126 per share (which is the remaining
amount of the Total Distribution Amount per share) will be subject
to tax withholding in accordance with the withholding tax rates
applicable to dividends. Accordingly, the following tax rates shall
be withheld from this amount per share: Israeli resident
individuals – 20%, unless a permit indicating another withholding
tax rate shall be presented to the Company in advance; Israeli
resident companies – 0% and foreign residents – 20%, subject to tax
treaties for the prevention of double taxation. Such tax
withholding shall be made by the Company.
According to the said Approval of the Israeli Tax Authority, the
Approval does not determine the classification of the tax event
and/or the income for tax purposes to be held by the Company's
shareholders.
Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the US Securities Act of 1933, as
amended, Section 21E of the US Securities Exchange Act of 1934, as
amended, and the safe harbor provisions of the US Private
Securities Litigation Reform Act of 1995. Words such as "believe",
"anticipate", "expect", "intend", "seek", "will", "plan", "could",
"may", "project", "goal", "target" and similar expressions often
identify forward-looking statements but are not the only way we
identify these statements. All statements other than statements of
historical fact included in this press release regarding our future
performance, plans to increase revenues or margins or preserve or
expand market share in existing or new markets, reduce expenses and
any statements regarding other future events or our future
prospects, are forward-looking statements.
We have based these forward-looking statements on our current
knowledge and our present beliefs and expectations regarding
possible future events. These forward-looking statements are
subject to risks, uncertainties and assumptions about Partner,
consumer habits and preferences in cellular telephone usage, trends
in the Israeli telecommunications industry in general, the impact
of current global economic conditions and possible regulatory and
legal developments. For a description of some of the risks we face,
see "Item 3D. Key Information - Risk Factors", "Item 4. -
Information on the Company", "Item 5. - Operating and Financial
Review and Prospects", "Item 8A. - Consolidated Financial
Statements and Other Financial Information - Legal and
Administrative Proceedings" and "Item 11. Quantitative and
Qualitative Disclosures about Market Risk" in the form 20-F filed
with the SEC on March 16, 2010. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this press release might not occur, and actual results may
differ materially from the results anticipated. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
About Partner
Communications
Partner Communications Company Ltd. ("Partner") is a leading
Israeli provider of telecommunications services (cellular,
fixed-line telephony and internet services) under the orange™
brand. The Company provides mobile communications services to over
3 million subscribers in Israel (as of December 31, 2009).
Partner’s ADSs are quoted on the NASDAQ Global Select Market™ and
its shares are traded on the Tel Aviv Stock Exchange (NASDAQ and
TASE: PTNR).
Partner is an approximately 45%-owned subsidiary of Scailex
Corporation Ltd. ("Scailex"). Scailex's shares are traded on the
Tel Aviv Stock Exchange under the symbol SCIX and are quoted on
"Pink Quote" under the symbol SCIXF.PK. Scailex currently operates
in three major domains of activity: 1) the sole import,
distribution and maintenance of Samsung mobile handset and
accessories products primarily to the three major cellular
operators in Israel; 2) distribution and sale of various
manufacturers' mobile handsets, accessories and provision of
maintenance services, through a chain of retail stores and booths
("Dynamic"), to end customers of Cellcom (as part of the
acquisition of the controlling stake in Partner, Scailex announced
to Cellcom the termination of the distribution agreement through
Dynamic, effective July 1, 2010 and On Jan 17, 2010 Scailex
announced the sale of Dymanic’s activity to Cellcom) and; (3)
management of its financial assets.
For more information about Scailex, see
http://www.scailex.com.
For more information about Partner, see
http://www.orange.co.il/investor_site.
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