Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 58

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 3
Chunk 58
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490) of qualifying capital contributions and
CHF 2,652,999.2 (approximately $2,909,013.62) of registered share capital (consisting of 1,703,345 common shares each with a nominal value
of CHF 0.80, 598,539 preferred shares each with a nominal value of CHF 0.80 and 1,014,365 preferred participation certificates each with
a nominal value of CHF 0.80) on our audited statutory balance sheet (which audit was performed by our independent registered public accounting
firm), as required pursuant to Swiss law. We will not be able to pay dividends or make other distributions to shareholders on a Swiss
withholding tax-free basis in excess of that amount unless we increase our share capital or our reserves from capital contributions. We
would also be able to pay dividends out of distributable profits or freely distributable reserves but such dividends would be subject
to Swiss withholding taxes. There can be no assurance that we will have sufficient distributable profits, free reserves, reserves from
capital contributions or registered share capital to pay a dividend or effect a capital reduction, that our shareholders will approve
dividends or capital reductions proposed by us, or that we will be able to meet the other legal requirements for dividend payments or
distributions as a result of capital reductions.

Generally, Swiss withholding
tax of 35% is due on dividends and similar distributions to our shareholders, regardless of the place of residency of the shareholder,
unless the distribution is made to shareholders out of (i) a reduction of nominal value or (ii) assuming certain conditions are met, qualifying
capital contributions accumulated on or after January 1, 1997. A U. S. holder that qualifies for benefits under the Convention between
United States of America and Switzerland for the Avoidance of Double Taxation with Respect to Taxes on Income, which we refer to as the
“ U. S.-Swiss Treaty,” may apply for a refund of the tax withheld in excess of the 15% treaty rate (or in excess of the 5% reduced
treaty rate for qualifying corporate shareholders with at least 10% participation in our voting shares, or for a full refund in the case
of qualified pension funds).

There can be no assurance
that we will have sufficient qualifying capital contributions to pay dividends free from Swiss withholding tax, or that Swiss withholding
rules will not be changed in the future. In addition, we cannot provide assurance