The Board of Royal Dutch Shell plc (“RDS”) announced last Friday that the pounds sterling and euro equivalent dividend payments in respect of the third quarter 2011 interim dividend, which was announced on October 27, 2011 at US$0.42 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 €0.3167 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by November 18, 2011 will be entitled to a dividend of 27.11p per A Share.
Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 27.11p per B Share. Holders of B Shares who have validly submitted euro currency elections by November 18, 2011 will be entitled to a dividend of €0.3167 per B Share.
This dividend will be payable on December 16, 2011 to those members whose names were on the Register of Members on November 4, 2011.
Taxation cash dividends
Dividends on A Shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A Share dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.
Shareholders resident in the United Kingdom, receiving dividends on B Shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.
The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the third quarter 2011 interim dividend of US$0.42 (27.11p or €0.3167) is US$0.05 (3.01p or €0.0352) per ordinary share and the dividend and tax credit together amount to US$0.47 (30.12p or €0.3519).