International Finance
Oil & Gas

Royal Dutch Shell plc releases its first quarter 2018 Euro and GBP equivalent dividend payments

Shell, dividends, Royal Dutch Shell plc, tax, UK, oil, oil & gas, energy
The Board announced the pounds sterling and euro equivalent dividend payments in respect of the first quarter 2018 interim dividend, which was announced on April 26, 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 €0.4011 per A Share. Holders of A Shares, who have validly submitted pounds sterling currency elections by May 25, 2018 will be entitled to a dividend of 35.18p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 35.18p per B Share. Holders of B Shares, who have validly submitted euro currency elections by May 25, 2018 will be entitled to a dividend of €0.4011 per B Share.

This dividend will be payable on June 18, 2018 to those members whose names were on the Register of Members on May 11, 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 tax free dividend allowance introduced, this was £5,000 for the 2016/17 and 2017/18 tax years and reduced to £2,000 for the 2018/19 tax year. 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.

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