ZIM Updates on Withholding Tax Procedures on December 2025 Cash Dividend

Rhea-AI Summary

ZIM (NYSE: ZIM) confirmed that an Israeli Tax Authority ruling will govern withholding tax procedures for its previously announced cash dividend of $0.31 per share (≈$37 million), payable to holders of record on December 1, 2025, with payment expected on December 8, 2025. The company will withhold 25% on the Payment Date and remit that amount to its appointed agent, IBI Trust Management.

Shareholders who are beneficial owners and residents of a treaty state may apply for a reduced withholding rate between the Payment Date and January 8, 2026, providing specified documentation; refunds will be returned to the dividend payment account within 30 days after the agent pays amounts to the Israeli Tax Authority, subject to exceptions for >5% holders or amounts >$500,000.

Positive

• Dividend declared of $0.31 per share (~$37 million)
• Ruling permits potential reduced withholding rates for eligible shareholders
• Agent to return refunds within 30 days after payment to ITA

Negative

• Company will withhold 25% of the dividend on Payment Date
• Applications and full documentation due by January 8, 2026
• No refund for holders >5% or payouts >$500,000 without ITA approval

News Market Reaction – ZIM

-5.44%

1 alert

-5.44% News Effect

On the day this news was published, ZIM declined 5.44%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Dividend per share: $0.31 per ordinary share Dividend total: approximately $37 million Standard withholding rate: 30% +5 more

8 metrics

Dividend per share $0.31 per ordinary share Cash dividend to holders of record on December 1, 2025

Dividend total approximately $37 million Total December 8, 2025 dividend payment

Standard withholding rate 30% Substantial shareholders under Israeli tax rules

Standard withholding rate 25% All other ordinary shareholders under Israeli tax rules

Initial withholding 25% of Dividend Amount withheld on Payment Date and remitted to Agent

Dividend remitted 75% of Dividend Portion sent to transfer agent and then to shareholders

Refund threshold 5% and $500,000 No Agent refund if holding >5% or entitlement >$500,000 without ITA approval

Change of Rate Period end January 8, 2026 Deadline to submit documents for reduced withholding rate

Market Reality Check

Price: $28.66 Vol: Volume 2,481,271 is below...

low vol

$28.66 Last Close

Volume Volume 2,481,271 is below the 20-day average of 6,157,583, indicating muted trading ahead of the dividend. low

Technical Price at 19.83 is trading above the 200-day MA of 15.89 and about 16.01% below the 52-week high.

Peers on Argus

Peers in Marine Shipping were mixed, with several names down (e.g., GOGL -3.62%,...

Peers in Marine Shipping were mixed, with several names down (e.g., GOGL -3.62%, NMM -1.94%, CMRE -0.99%) and CCEC up 1.11%, suggesting stock-specific rather than broad sector drivers for ZIM.

Historical Context

5 past events · Latest: Dec 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Investor materials	Neutral	-1.1%	Board filed investor presentation and letter to shareholders.
Dec 01	Dividend tax update	Positive	-5.4%	Confirmed ITA ruling and reduced withholding options for December dividend.
Nov 25	Strategic review	Positive	+13.6%	Board disclosed strategic review after preliminary non-binding acquisition proposal.
Oct 30	Earnings scheduling	Neutral	-2.6%	Announced date and call details for Q3 2025 results release.
Sep 02	Dividend tax update	Positive	+0.4%	Outlined reduced withholding procedures for September 2025 cash dividend.

Pattern Detected

Dividend tax procedure updates have shown mixed reactions: one prior event aligned modestly positive, while another saw a notable negative divergence.

Recent Company History

Over the last six months, ZIM has combined capital returns with corporate developments. Multiple updates detailed withholding tax procedures for cash dividends, including payments in April, June, September, and the upcoming December 8, 2025 dividend, using Israeli Tax Authority rulings and IBI Trust Management as agent. Alongside this, the board disclosed a strategic review following a Nov. 25, 2025 proposal to acquire all ordinary shares. Procedural filings on earnings timing and shareholder communications rounded out news flow.

Market Pulse Summary

The stock moved -5.4% in the session following this news. A negative reaction despite the clarified ...

Analysis

The stock moved -5.4% in the session following this news. A negative reaction despite the clarified dividend tax procedures would fit prior instances where dividend-related news coincided with downside, such as a -5.44% move after an earlier tax update. The announcement itself mainly formalized an existing Israeli Tax Authority ruling and processing steps for the $0.31 dividend, so a sharp decline could reflect broader positioning, expectations for future payouts, or profit-taking in a name trading well above its 200-day MA.

Key Terms

withholding tax, beneficial owner, tax treaty, Treaty State, +1 more

5 terms

withholding tax regulatory

"General Withholding Tax Treatment under Israeli Law As set out in the Company's Annual Report..."

Withholding tax is a government-required portion of a payment—such as dividends, interest, or salary—that the payer keeps back and sends directly to tax authorities before the recipient receives the money. For investors it reduces the cash they actually get and changes the after-tax return on an investment; rates and refund or credit rules vary by country and can materially affect comparisons between similar investments, like a cashier holding part of a bill to cover taxes.

beneficial owner regulatory

"A Shareholder who is a resident of a country with which Israel has a tax treaty... and is the beneficial owner of the Dividend..."

A beneficial owner is the person who ultimately owns or controls a financial asset or property, even if their name isn't directly on official documents. Think of it like someone who secretly holds the keys to a safe deposit box—others may appear to have access, but the true owner is the one who benefits from what's inside. Identifying beneficial owners helps ensure transparency and prevent illegal activities like money laundering or fraud.

tax treaty regulatory

"A Shareholder who is a resident of a country with which Israel has a tax treaty ("Treaty State")..."

A tax treaty is a formal agreement between two countries that sets rules for how income earned across borders is taxed, much like a traffic pact that tells drivers which road rules apply when crossing a border. For investors it matters because the treaty can reduce or eliminate double taxation, lower withholding taxes on dividends, interest or royalties, and provide clarity on tax residency and information sharing, which affects net returns and tax risk.

Treaty State regulatory

"A Shareholder who is a resident of a country with which Israel has a tax treaty ("Treaty State")..."

A treaty state is a country that has formally signed and ratified an international agreement with one or more other countries, often covering taxes, trade, investment protection or information exchange. For investors, knowing which jurisdiction is a treaty state matters because those agreements can lower or change tax bills, protect cross-border investments, and affect how profits and legal rights are handled — like two neighbors signing a contract that changes how they share costs and resolve disputes.

permanent establishment regulatory

"the investment in ZIM shares has not been made through a permanent establishment in Israel..."

A permanent establishment is a sustained presence in another country—such as an office, factory, branch, or regularly staffed site—that makes a business liable for local corporate taxes on income earned there. It matters to investors because it determines where profits get taxed, can create additional compliance costs or withholding, and affects net returns and valuation in cross-border operations, much like opening a local storefront triggers local tax rules and obligations.

AI-generated analysis. Not financial advice.

HAIFA, Israel, Dec. 1, 2025 /PRNewswire/ -- ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) ("ZIM" or the "Company"), a global container liner shipping company, hereby updates that in connection with the dividend distribution expected to take place on December 8, 2025, as previously announced by the Company on November 20, 2025 (the "Dividend"), the previously obtained tax ruling from the Israeli Tax Authority ("ITA") on tax withholding procedures relating to the payment of the Dividend to the Company's shareholders (the "Ruling") shall apply.

As a result of the Ruling, certain shareholders of the Company ("Shareholders") may be eligible to a reduced Israeli withholding tax rate with respect to their share of this Dividend, in comparison to the generally applicable withholding tax rate (the "Reduced Withholding Tax Rate"), under certain terms and conditions as set forth below.

The description provided below is not intended to constitute a complete analysis of withholding tax rate procedures relating to the distribution of the Dividend, nor does it address the actual tax liability of any of the Shareholders, but merely relates to the Israeli withholding tax procedures relating to the distribution of the Dividend. Other than the Dividend previously declared by the Company to be paid on December 8, 2025, there is no guarantee the Company will declare additional dividends in the future.

Shareholders are advised to consult their own tax and financial advisors concerning the tax consequences of each particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction. For the avoidance of doubt, the Agent IBI Trust Management (whose information is provided below) has been retained by ZIM for the purpose of coordinating certain procedures relating to the Ruling, and it is NOT intended that the Agent will provide any tax advice to any of the Shareholders, who are encouraged to consult their own tax and financial advisors.

Forms required to be submitted to the Agent in connection with the Ruling as described below are available in the following link (the full link appears below, under the Agent's contact information), and can also be found on the Company's website here.

Background

On November 20, 2025, ZIM announced a dividend payment of $0.31 per ordinary share (approximately $37 million), to be paid to holders of ordinary shares as of December 1, 2025. Payment of the Dividend is expected to be made on December 8, 2025 (the "Payment Date").

General Withholding Tax Treatment under Israeli Law

As set out in the Company's Annual Report on Form 20-F filed with the Commission on March 12, 2025, with respect to dividends sourced from regular earnings, under the Israeli Tax Ordinance and regulations issued under the Israeli Tax Ordinance (collectively, "ITO"), the current Israeli rate of withholding tax on dividends paid by an Israeli company is 30% for distributions to a "substantial shareholder" (in general, being someone who holds, directly or indirectly, by himself or together with others, at least 10% of one or more of the means of control in the company) and 25% with respect to distributions to all other holders of Ordinary Shares ("Withholding Tax"). Notwithstanding the foregoing, as a result of the Ruling and subject to its terms and conditions, certain Shareholders, both Israeli and non-Israeli, may be eligible to a reduced Israeli withholding tax rate on their share of this dividend distribution, in comparison to the generally applicable withholding tax rate described above, (the "Reduced Withholding Tax Rate"), under certain terms and conditions as set forth below.

Summary of the Main Terms of the Ruling

The following is a summary of some of the key terms of the Ruling. It is emphasized that the description below does not purport to exhaust all the terms and conditions included in the Ruling and is not a complete translation of the Ruling. In order to enjoy the Reduced Withholding Tax Rate, Shareholders must comply with all the terms of the Ruling, a copy of which in the Hebrew language as well as an unofficial non-binding English translation thereof can be obtained free of charge by email by approaching the Agent (as defined below) at the contact details provided below.

1. On the Payment Date the Company will withhold 25% of the Dividend amount and will remit the tax amount to the Agent, to be handled by the Agent in accordance with the terms and conditions of the Ruling.
2. The remaining 75% of the Dividend amount will be remitted by the Company to its transfer agent, Equiniti Trust Company, LLC, which will transfer the said amount to the Shareholders (including through brokers who hold in brokerage accounts ZIM shares on behalf of Shareholders).
3. A Shareholder who is a resident of a country with which Israel has a tax treaty ("Treaty State") (based on a declaration to be provided by such Shareholder) and is the beneficial owner of the Dividend, may apply to the Agent requesting a Reduced Tax Withholding Rate. Such application must be received by the Agent between the Payment Date and January 8, 2026 (the "Change of Rate Period"). The eligibility for a reduced tax rate will be evaluated by the Agent in accordance with Israeli tax laws and any applicable treaties, and therefore there is no guarantee that the applicant shareholder will be eligible for a tax refund.
4. A Shareholder who declared that he or she is a resident of a Treaty State and is the beneficial owner of the Dividend may apply to the Agent during the Change of Rate Period only (subject to complying with all the documentation requirements detailed below) requesting the receipt of the monetary difference between the tax amount remitted to the Agent (at a rate of 25%) and the amount represented by the withholding tax rate set forth in the tax treaty between Israel and such Treaty State or by the limited withholding tax rate applicable to such dividend payment under the ITO, to the extent applicable.
5. A Shareholder who did not declare that it, he or she is a resident of a Treaty State and is the beneficial owner of the Dividend, may apply to the Agent during the Change of Rate Period only (subject to complying with all the documentation requirements detailed below) requesting the receipt of the monetary difference between the tax amount remitted to the Agent (at a rate of 25%) and the amount represented by the withholding tax rate applicable to such dividend payment under the ITO or by the limited withholding tax rate applicable to such dividend payment under the ITO, to the extent applicable.
6. Any Shareholder who claims to be entitled to a Reduced Tax Withholding Rate in accordance with the foregoing, will be required to provide the Agent with all relevant documentation as detailed in the Ruling and the forms available in the following link, on no later than January 8, 2026 (the end of Change of Rate Period), including but not limited to, bank account details to which the dividend payment should be transferred, number of ZIM shares owned by the Shareholder in such account, identification document, and confirmation of residence for the tax year 2025 issued by the taxing authority of the state of tax residence.
7. In addition to the foregoing, the Shareholder will provide a written declaration in the form annexed to this announcement which will include declarations as to the following: (i)  the Shareholder's tax residence for the tax year 2025, (ii) the Shareholder's beneficial ownership of the dividend, (iii) the investment in ZIM shares has not been made through a permanent establishment in Israel, (iv) the holding of ZIM shares is made for the Shareholder's own account and not for the account of others, and (v) the payment will not be made to a permanent establishment of the Shareholder outside of the Shareholder's tax residence.
8. A non-Israeli corporate Shareholder (excluding a Shareholder covered by section 9 below) that requests a Reduced Tax Withholding Rate, will also need to provide the Agent with its updated shareholders register as of December 1, 2025, and a statement confirming that more than 75% of its shareholders, directly or indirectly, are individuals of its state of residence for the tax year 2025.
9. A publicly traded non-Israeli corporate Shareholder whose shares are traded on a stock market outside of Israel and is a resident of a Treaty State, or a direct or indirect subsidiary of such Shareholder, will also provide the Agent with a declaration that it is a resident of such Treaty State or another non-Israeli state for the tax year 2025, as applicable.
10. An Israeli corporate Shareholder which is entitled to a Reduced Tax Withholding Rate (including an exemption from withholding tax at source), will be able to apply to the Agent no later than January 8, 2026, (the end of the Change of Rate Period) and enclose an applicable valid ITA issued certificate setting forth a Reduced Tax Withholding Rate or an exemption from withholding tax. In addition, such Shareholder will enclose its certificate of incorporation and all other documents required as set forth above, mutatis mutandis as requested by the Agent.
11. The Agent is entitled to request from the Shareholders applying for a Reduced Tax Withholding Rate additional documents in its discretion insofar as they are required to establish the tax residence of the Shareholder or its entitlement to exemption and/or to a Reduced Tax Withholding Rate.
12. Notwithstanding the foregoing, no refund of excess tax withholding shall be affected by the Agent with respect to any Shareholder holding more than 5% of the issued share capital of the Company, or whose entitlement to dividend from the Company pursuant to the Dividend exceeds $500,000, other than in accordance with a specific approval issued by the ITA.
13. The transfer of the amounts withheld, excluding the amounts returned to the Shareholders, as aforementioned, shall be conducted by the Agent. Subject to receipt by the Agent of your required documentation, the Agent will return the amounts withheld to the Shareholders as detailed above to the account at which the dividend payment was made within 30 days from the date the amounts withheld are paid to the ITA.
14. The Ruling is aimed to address solely the issue of tax withholding procedures and should not be construed as setting the actual tax liability of any Shareholder with respect to the Dividend or otherwise.

Appointment of Israeli Tax Withholding Agent

In order to facilitate the implementation of the procedures set forth in the Ruling for the benefit of its Shareholders, the Company appointed IBI Trust Management to serve as a processing agent for the benefit of the Shareholders in connection with the distribution of the Dividend (the "Agent"). Contact information of the Agent is provided at the bottom of this announcement. We encourage you to contact the Agent if you need any clarifications in filling-in the forms required under the Ruling to obtain a Reduced Withholding Tax Rate, or if you have any questions concerning the process. Please note that the Agent will not provide any tax advice to any Shareholder, who should consult their own tax and financial advisors.

In order to be eligible to benefit from a Reduced Withholding Tax Rate, Shareholders must provide the Agent with all documentation required under the Ruling not later than January 8, 2026. The relevant forms are included in the following link.

If a Shareholder fails to provide the Agent with all the documentation required by  January 8, 2026, the Agent will not be able to attend to such Shareholder's application and will not be able to return any amounts originally remitted on behalf of such Shareholder nor provide any confirmation of tax withholding to such a Shareholder, either in connection with the Ruling or in connection with any other tax filing by such Shareholder.

ZIM's Agent Contact Information:
IBI Trust Management
Tel No: +972-3-519-3896, +972-50-620-9410
Email: ZimDividend@ibi.co.il

Link to forms:

https://form.cellosign.co/public/djE6d2Y6MzlhOTE4M2MtYmU1My00MmNjLWFhMTktYjc5NGJmYTRjOTcxOlN0YXJ0RXZlbnRfMWl1OTBscQ==

About ZIM

Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading global container liner shipping company with established operations in more than 100 countries serving approximately 33,000 customers in over 330 ports worldwide. ZIM leverages digital strategies and a commitment to ESG values to provide customers innovative seaborne transportation and logistics services and exceptional customer experience. ZIM's differentiated global-niche strategy, based on agile fleet management and deployment, covers major trade routes with a focus on select markets where the company holds competitive advantages. Additional information about ZIM is available at www.ZIM.com.

ZIM Contacts

Media:

Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com  

Investor Relations:

Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

View original content:https://www.prnewswire.com/news-releases/zim-updates-on-withholding-tax-procedures-on-december-2025-cash-dividend-302629011.html

SOURCE ZIM Integrated Shipping Services Ltd.

FAQ

What dividend did ZIM (NYSE: ZIM) declare and when is the payment date?

ZIM declared a cash dividend of $0.31 per share, payable to shareholders of record on Dec 1, 2025, with payment expected on Dec 8, 2025.

How much tax will ZIM withhold on the Dec 8, 2025 dividend payment?

The company will withhold 25% of the dividend on the Payment Date and remit it to the appointed agent.

Who can apply for a reduced Israeli withholding tax rate for ZIM dividend (ZIM)?

Beneficial owners resident in a treaty state, or other eligible shareholders meeting documentation rules, may apply for a reduced rate.

What is the deadline to apply for a reduced withholding tax rate for ZIM dividend?

Applications and all required documentation must be received by the agent no later than January 8, 2026.

How and when will refunds for excess withholding be returned for ZIM shareholders?

Subject to documentation, the agent will return withheld amounts to the dividend payment account within 30 days after amounts are paid to the Israeli Tax Authority.

Are there restrictions on refunds for large ZIM shareholders?

No refund will be processed for shareholders holding >5% of issued capital or dividends exceeding $500,000 without specific ITA approval.