Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 156

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 156
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. Holders will
be deemed to own a proportionate amount (by value) of the shares of each Lower-tier PFIC and will be subject to U. S. federal income tax
according to the rules described in the next paragraph on (i) certain distributions by the Lower-tier PFIC and (ii) dispositions of shares
of the Lower-tier PFIC, in each case as if the U. S. Holders held such shares directly, even though the U. S. Holder will not receive any
proceeds of those distributions or dispositions.

In general, if we are a PFIC for any taxable year
of ours during which a U. S. Holder owns ordinary shares, gain recognized by such U. S. Holder on a sale or other disposition (including
certain pledges) of its ordinary shares will be allocated ratably over its holding period. The amounts allocated to the U. S. Holder’s
taxable year of the sale or disposition and to any taxable year before we became a PFIC with respect to such U. S. Holder will be taxed
as ordinary income. The amount allocated to each other taxable year will be subject to tax at the highest rate in effect for individuals
or corporations, as applicable, for that taxable year, and an interest charge will be imposed on the resulting tax liability for each
such year. Furthermore, to the extent that distributions received by a U. S. Holder in any taxable year on its ordinary shares exceed 125%
of the average of the annual distributions on the ordinary shares received during the preceding three taxable years or the U. S. Holder’s
holding period, whichever is shorter, such excess distributions will be subject to taxation in the same manner. If we are a PFIC for any
taxable year during which a U. S. Holder owns ordinary shares, we will generally continue to be treated as a PFIC with respect to the U. S.
Holder for all succeeding taxable years during which the U. S. Holder owns the ordinary shares, even if we cease to meet the threshold
requirements for PFIC status, unless the U. S. Holder makes a timely “deemed sale” election. If we are a PFIC for any taxable
year, a mark-to-market election may be available, which will result in an alternative treatment of the ordinary shares. U. S. Holders should
consult their tax advisers to determine whether any of these elections will be available or advisable, and, if so, what