The Board of Royal Dutch Shell plc (“RDS”) today announced the pounds sterling and euro equivalent dividend payments in respect of the fourth quarter 2017 interim dividend, which was announced on February 1, 2018 at US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”).
Dividends on A Shares will be paid, by default, in euro at the rate of €0.3818 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by March 2, 2018 will be entitled to a dividend of 33.91p per A Share.
Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 33.91p per B Share. Holders of B Shares who have validly submitted euro currency elections by March 2, 2018 will be entitled to a dividend of €0.3818 per B Share.
This dividend will be payable on March 26, 2018 to those members whose names were on the Register of Members on February 16, 2018.
Taxation - cash dividend
Cash dividends on A Shares will be subject to the deduction of Dutch dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their particular circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax.
Furthermore, in April 2016, there were changes to the UK taxation of dividends. The dividend tax credit was abolished, and a new tax free dividend allowance introduced. Dividend income in excess of the allowance is taxable at the following rates: 7.5% within the basic rate band; 32.5% within the higher rate band; and 38.1% on dividend income taxable at the additional rate.
If you are uncertain as to the tax treatment of any dividends you should consult your own tax advisor.