Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 88

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 88
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 and/or results of operations and could result
in an adverse opinion on internal controls from our independent auditors.

Risks Related
to Tax Matters

We may be a passive foreign investment company
for U. S. federal income tax purposes, which generally would result in certain adverse U. S. federal income tax consequences to our U. S.
shareholders.

In general, a non-U. S. corporation is a “passive
foreign investment company” (a PFIC) for any taxable year in which (i) 75% or more of its gross income consists of passive income
(the “income test”) or (ii) 50% or more of the average quarterly value of its assets consists of assets that produce, or are
held for the production of, passive income (the “asset test”). Generally, “passive income” includes interest,
dividends, rents, royalties, certain gains, and cash is a passive asset for PFIC purposes.

We have not made a formal determination as to whether
we would be classified as a PFIC for the current taxable year or previous taxable years, and do not plan to make such a determination
for subsequent years. The determination
of whether we are a PFIC depends on the particular facts and circumstances (such as the valuation of our assets, including goodwill and
other intangible assets), and may also be affected by the application of the PFIC rules, which are subject to differing interpretations.
The fair market value of our assets is expected to depend, in part, upon (i) the market price of the ADSs, which is likely to fluctuate,
and (ii) the composition of our income and assets, which will be affected by how, and how quickly, we spend any cash that is raised in
any financing transaction.

If we were a PFIC for any taxable year during which
a U. S. shareholder owned the ADSs, such U. S. shareholder generally will be subject to certain adverse U. S. federal income tax consequences,
including increased tax liability on gains from dispositions of the ADSs and certain distributions and a requirement to file annual reports
with the Internal Revenue Service. In light of the foregoing, no assurance can be provided that we are not currently a PFIC or that we
will not become a PFIC in any future taxable year. Prospective investors should consult their own tax advisers regarding our PFIC status.
See “ Material Tax Considerations - Certain U. S. Federal Income Tax Considerations - Passive