Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 100
If a partnership (or other entity or arrangement
treated as a partnership for US federal income tax
purposes) holds shares or ADSs, the tax treatment of a
partner generally will depend upon the status of the
partner and the activities of the partnership. A partner
in a partnership that holds shares or ADSs is urged to
consult its own tax advisor regarding the specific tax
consequences of the ownership and disposition of the
shares or ADSs.
circumstances as well as any consequences arising
under the laws of any other taxing jurisdiction. In
particular, US holders are urged to consult their own
tax advisors regarding whether they are eligible for
benefits under the Treaty.
This summary does not address all aspects of
US federal income taxation that may apply to holders
that are subject to special tax rules, including US
expatriates, insurance companies, tax-exempt
organisations, banks, financial institutions, regulated
investment companies, persons subject to the
alternative minimum tax or the 3.8% Medicare tax on
net investment income, securities broker-dealers,
traders in securities who elect to apply a
mark-to-market method of accounting, persons holding
their shares or ADSs as part of a straddle, hedging
transaction or conversion transaction, persons who
acquired their shares or ADSs pursuant to the exercise
of employee stock options or similar derivative
securities or otherwise as compensation, persons who
directly or indirectly hold more than 10% of Sasol’s
shares (by vote or value), partnerships or other passthrough entities or arrangements or persons whose
functional currency is not the US dollar. Such holders
may be subject to US federal income tax consequences
different from those set forth below.
For US federal income tax purposes, a
US holder of ADSs should be treated as owning the
underlying shares represented by those ADSs. The
following discussion (except where otherwise expressly
noted) applies equally to US holders of shares and US
holders of ADSs. Furthermore, deposits or withdrawals
of shares by a US holder for ADSs or ADSs for shares
will not be subject to US federal income tax.
Taxation of distributions
Distributions (without reduction of South
African withholding taxes, if any) made with respect to
shares or ADSs (other than certain pro rata distributions
of Sasol’s capital stock or rights to subscribe for shares
of Sasol’s capital stock) are includible in the gross
income of a US holder as foreign source dividend
income on the date such distributions are received by
the US holder, in the case of shares, or by the
Depositary, in the case of ADSs, to the extent paid out
of Sasol’s current or accumulated earnings and profits,
if any, as determined for US federal income tax
purposes (earnings and profits). Any distribution that
exceeds Sasol’s earnings and profits will be treated first
as a non-taxable return of capital to the extent of the US
holder’s tax basis in the shares or ADSs (thereby
reducing a US holder’s tax basis in such shares or
ADSs) and thereafter as either long-term or short-term
capital gain (depending on whether the US holder has
held shares or ADSs, as applicable, for more than
one year as of the time such distribution is actually or
constructively received).
As used herein, the term “US holder” means a
beneficial owner of shares or ADSs that is:
(a)
a citizen or individual resident of the
US for US federal income tax
purposes;
(b)
a corporation (or other entity taxable
as a corporation for US federal
income tax purposes) created or
organised in or under the laws of the
US, any state thereof or the District
of Columbia;
(c)
an estate whose income is subject to
US federal income taxation
regardless of its source; or
(d)
a trust if a court within the US can
exercise primary supervision over the
administration of the trust and one or
more US persons are authorised to
control all substantial decisions of the
trust.
The amount of any distribution paid in foreign
currency, including the amount of any South African
withholding tax thereon, will be included in the gross
income of a US holder in an amount equal to the US
dollar value of the foreign currency calculated by
reference to the spot rate in effect on the date the
dividend is actually or constructively received by the
US holder, in the case of shares, or by the Depositary,
in the case of ADSs, regardless of whether the foreign
currency is converted into US dollars at such time. If
the foreign currency is converted into US dollars on the
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