NEW YORK, Jan. 30, 2017 (GLOBE NEWSWIRE) -- Newtek Business Services Corp. ("Newtek" or the "Company")  (NASDAQ:NEWT), an internally managed business development company ("BDC"), today announced the calculation of the dividend tax status for its dividends paid in 2016.  The Company announced that approximately 53.0% of the regular quarterly cash dividends paid in 2016 will be taxed as ordinary income, 34.8% will be taxed as qualified dividends and 12.2% will be taxed as long-term capital gains. 

Long-term capital gains and qualified dividends paid to non-corporate taxpayers (including individuals) qualify for favorable tax treatment under the Internal Revenue Code and, for 2016, will generally be subject to a maximum 20% U.S. federal income tax rate (plus a 3.8% Medicare surtax, if applicable). Shareholders should consult their own tax advisors concerning the U.S. federal tax treatment of dividends reported as qualified dividends in light of their unique circumstances.

The following table provides a summary by payment date of the U.S. federal income tax characteristics of Newtek's dividends that are attributable to 2016: 
Payable date Distribution amount per share Taxable Long-term capital gains Qualified Non-Qualified Total
1/19/2016 $   0.40 88.3 % 11.7 % 37.8 % 62.2 % 100.00 %
3/31/2016 $   0.35 86.6 % 13.4 % 35.3 % 64.7 % 100.00 %
6/30/2016 $   0.35 86.6 % 13.4 % 33.6 % 66.4 % 100.00 %
9/30/2016 $   0.43 89.1 % 10.9 % 33.6 % 66.4 % 100.00 %
12/30/2016 $   0.40 88.3 % 11.7 % 33.6 % 66.4 % 100.00 %

Barry Sloane, President, Chairman and Chief Executive Officer of Newtek said, "We are pleased to announce the calculation of the tax status for our dividends paid in 2016 and that approximately 47% of our 2016 quarterly cash dividends qualify for preferential tax treatment.  This is a direct function of our business model where, historically, our controlled portfolio companies have provided a reoccurring stream of income which is taxed at the portfolio companies before being paid to the company."

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