Apr. 24 at 2:57 PM
$ZIM maybe this is in play ????
Why Withholding Tax is Levied
Israeli Tax Jurisdiction: ZIM is incorporated and headquartered in Israel, making the cash consideration subject to tax under the Income Tax Ordinance of Israel.
Sale of Shares: The merger is structured as a share sale where shareholders receive cash (
$35.00 per share), which is generally treated as a capital gain or taxable event for the shareholders.
Applicable Withholding: Under Israeli law, companies making such payments are required to deduct tax at the source unless a specific exemption or reduced rate applies.
PR Newswire +4
Amount and Calculation Withholding Tax
Default Rate: Without documentation, the default withholding rate is generally 25% on the gain or the gross consideration, though the specific ruling for this merger might dictate a different percentage.
Calculation: The tax is typically calculated based on the total cash consideration (
$35.00 per share) multiplied by the applicable withholding rate.
