ZIM Offers Reduced Withholding Tax Option for $0.88 Dividend
ZIM will pay a $0.88 per share cash dividend on March 26, 2026, totaling approximately $106 million, with 25% withheld pending tax procedures. Eligible treaty-state shareholders may apply by May 7, 2026 to receive a reduced Israeli withholding tax rate on their dividend shares.
1. Dividend Distribution Overview
ZIM will distribute a cash dividend of $0.88 per ordinary share on March 26, 2026, representing approximately $106 million to shareholders of record as of March 20, 2026.
2. Withholding Tax Rates and Procedures
Under Israeli law, ZIM must withhold 30% for substantial shareholders and 25% for all other holders of ordinary shares, with the company initially withholding 25% on the Payment Date pending the outcome of tax procedures.
3. Application Process and Deadline
Shareholders who are beneficial owners and residents of a treaty state can apply to IBI Trust Management between March 26 and May 7, 2026 for eligibility to a reduced withholding tax rate, subject to compliance with terms and documentation.
4. Dividend Limitation Under Hapag-Lloyd Merger
Pursuant to the February 16, 2026 merger agreement with Hapag-Lloyd AG, ZIM’s capacity to declare dividends beyond its regular policy is limited, and no additional distributions are guaranteed beyond the March 26 payment.