Extension of PTE accreditation
18 January 2022
("Plus500", the "Company" or together with its subsidiaries the "Group")
Extension of Preferred Technological Enterprise accreditation for Plus500 Ltd.
Plus500, a global multi-asset fintech group operating technology-based trading platforms, is pleased to announce today that Plus500 Ltd.'s status as a "Preferred Technological Enterprise" ("PTE"), as accredited by the Israeli Tax Authority ("ITA") under the tax regime in Israel, has been extended for the financial years 2022, 2023, 2024, 2025 and 2026.
Consequently, Plus500 Ltd.'s Corporation Tax rate for each of these financial years will be reduced from 23% to 12% and the Withholding Tax rate applicable for dividends will be reduced from 25% to 20%.
This follows Plus500 Ltd.'s initial accreditation as a PTE by the ITA and the Israeli Innovation Authority ("IIA") in 2020, at which time the Company's Corporate Tax rate for financial years 2017, 2018 and 2019 was reduced from 24%, 23% and 23% in each respective year to 12% in each of these years. This updated Corporation Tax rate of 12% was also applicable for the financial years 2020 and 2021. In addition, the Withholding Tax rate applicable for dividends was reduced from 25% to 20%, up to the financial year 2021.
David Zruia, Chief Executive Officer, commented:
"Plus500 was one of the first companies to receive the 'Preferred Technological Enterprise' tax accreditation in 2020, delivering significant rebates and cash savings for the company and its shareholders, and helping to support on-going investment in our technology.
"The significant achievement of an extension of this accreditation, due to the substantial commitment and efforts of the Group's Chief Financial Officer, Elad Even-Chen and the finance team, represents additional significant potential to shareholder value. In addition, the accreditation further validates the high quality and capability of Plus500's technology, developed over a number of years, which will be further strengthened by our on-going investment in innovation, R&D and product development."
For further details
Plus500 is a global multi-asset fintech group operating technology-based trading platforms. Plus500 offers customers a range of trading products, including Contracts for Difference ("CFDs") and share dealing, as well as futures and options on futures in the US.
The Group retains operating licenses and is regulated in the United Kingdom, Australia, Cyprus, Israel, New Zealand, South Africa, Singapore and the Seychelles and through its CFDs product portfolio, offers more than 2,500 different underlying global financial instruments, comprising equities, indices, commodities, options, ETFs, foreign exchange and cryptocurrencies. Customers of the Group can trade CFDs in more than 50 countries and in 30 languages. Plus500 does not permit customers located in the US to trade CFDs.
In 2021, the Company acquired Cunningham Commodities LLC, a Futures Commission Merchant, and Cunningham Trading Systems LLC, a technology trading platform provider, both of which operate in the futures and options on futures market in the US, enabling Plus500 immediate access to that sizable and growing market. Also in 2021, the Company launched a new share dealing platform, 'Plus500 Invest', across a number of product offerings, including a wide range of financial instruments comprising of the world's most popular equities and ETFs, listed on major exchanges worldwide.
Plus500 does not utilise cold calling techniques and does not offer binary options. Plus500's trading platforms are accessible from multiple operating systems (Windows, iOS, Android and Surface) and web browsers. Customer care is and has always been integral to Plus500, as such, customers cannot be subject to negative balances. A free demo account is available on an unlimited basis for CFD platform users and sophisticated risk management tools are provided free of charge to manage leveraged exposure, and stop losses to help customers protect profits, while limiting capital losses.
Plus500 shares have a premium listing on the Main Market of the London Stock Exchange (symbol: PLUS) and are a constituent of the FTSE 250 index. www.plus500.com
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
Forward looking statements
This announcement contains statements that are or may be forward-looking statements. All statements other than statements of historical facts included in this announcement may be forward-looking statements, including statements that relate to the Company's future prospects, developments and strategies. The Company does not accept any responsibility for the accuracy or completeness of any information reported by the press or other media, nor the fairness or appropriateness of any forecasts, views or opinions express by the press or other media regarding the Group. The Company makes no representation as to the appropriateness, accuracy, completeness or reliability of any such information or publication.
Forward-looking statements are identified by their use of terms and phrases such as "believe", "targets", "expects", "aim", "anticipate", "projects", "would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements in this announcement are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to, those described in the risk factors. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such entity and the environment in which each will operate in the future. All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. Each forward-looking statement speaks only as at the date of this announcement. Except as required by law, regulatory requirement, the Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.