The Board reviews and determines the dividend on a quarterly basis after considering a number of commercial factors, including but not limited to:expected commodity prices, foreign exchange rates, economic conditions, royalty production volumes and revenues, corporate income tax payable, and our capacity to finance operating and royalty acquisition obligations. The dividend rate is established and balanced alongside the intent of maintaining a strong balance sheet to take advantage of potential royalty acquisition opportunities.
Vox’s inaugural quarterly dividend was declared on September 20, 2022, fixed at US$0.01 per share, payable on November 4, 2022 to shareholders of record as of the close of business on October 21, 2022. For shareholders residing in Canada, the dividend will be paid in Canadian dollars based on the daily exchange rate published by the Bank of Canada on October 21, 2022.
A Direct Deposit option is in place to provide shareholders who have Canadian bank accounts with a method of receiving cash dividends as a direct deposit into their bank account.
CANADIAN INCOME TAX
Dividends paid on common shares are designated as eligible dividends for Canadian income tax purposes. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
Shareholders who are not residents of Canada for income tax purposes are encouraged to seek advice from a qualified tax advisor in their country of residence regarding the tax treatment of dividends.
NON-RESIDENT WITHHOLDING TAX
Dividends paid or payable to non-residents of Canada are subject, on the date of payment, to a withholding tax of 25%, as prescribed by the Income Tax Act (Canada). This withholding tax may be reduced in accordance with reciprocal tax treaties. In the case of the Tax Treaty between Canada and the U.S., the withholding tax for U.S. residents is prescribed at 15%.
Vox encourages all non-resident shareholders holding shares directly on the company’s register (as opposed to through an intermediary such as CDS & Co.) to complete the Canada Revenue Agency’s Form NR301 and return the completed form to [email protected] by October 14, 2022 in order for Vox’s transfer agent, TSX Trust, to apply the correct amount of withholding prior to payment of dividends. For more information, please visit the Canada Revenue Agency’s website here.