Tax ruling regarding previously announced $35 million cash dividend to shareholders
Gilat Satellite Networks Ltd., a worldwide leader in satellite networking technology, solutions and services, announced today that it has obtained tax ruling from the Israel Tax Authority with respect to the $0.63 per share dividend announced on December 30, 2020.
In accordance with Israeli tax law, the Company will withhold 25% of the gross amount of the dividend paid to shareholders. The dividend payment may be subject to certain applicable exemptions (including the exemption for distribution of dividends to Israeli corporations that are exempt from Israeli withholding tax) and tax reliefs. The Company has obtained a ruling from the Israel Tax Authority setting procedures with respect to eligible shareholders who are residents of a country with which Israel has a tax treaty providing for a lower withholding tax rate to benefit from such lower tax rates with respect to the dividend. For that purpose, the Company has appointed IBI Trust Management as a paying agent to act in accordance with the Israeli Tax Ordinance. A shareholder who holds his or her shares other than through a Israeli financial institution and who is subject to a lower withholding tax rate as a resident of a country with which Israel has a treaty for the avoidance of double taxation may contact the paying agent to inquire about such shareholder’s eligibility for a lower withholding tax rate. Eligible shareholders may submit to the paying agent the documentation as will be specified in an instruction letter which is posted on the Company’s website under the “Investors Relations” tab. Subject to complying with the applicable requirements and submitting all the required documents, the paying agent will transfer the surplus tax amount, if applicable, to the shareholder in the manner specified in the instruction letter.