Company: IBACR
Filing Date: 2025-09-10
Form Type: DEFR14A
Source: 0001641172-25-027042
Chunk: 26

Company: IB Acquisition Corp.
Filing Date: 2025-09-10
Form: DEFR14A
Chunk 26
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 Loss on a Redemption of Common Stock Treated as a Sale

If the redemption qualifies as a sale of common stock, a Non-U.S. Holder generally will not be subject to United States federal income or withholding tax in respect of gain recognized on a sale of its common stock of the Company, unless:

| ● | the                                                                                           
 gain is effectively connected with the conduct of a trade or business by the Non-U.S. Holder  
 within the United States (and, under certain income tax treaties, is attributable to a United 
 States permanent establishment or fixed base maintained by the Non-U.S. Holder), in which     
 case the Non-U.S. Holder will generally be subject to the same treatment as a U.S. Holder     
 with respect to the redemption, and a corporate Non-U.S. Holder may be subject to the branch  
 profits tax at a 30% rate (or lower rate as may be specified by an applicable income tax      
 treaty);                                                                                      |

| ● | the                                                                                       
 Non-U.S. Holder is an individual who is present in the United States for 183 days or more 
 in the taxable year in which the redemption takes place and certain other conditions are  
 met, in which case the Non-U.S. Holder will be subject to a 30% tax on the individual’s   
 net capital gain for the year; or                                                         |

| 16 |

Taxation of Distributions

If the redemption does not qualify as a sale of common stock, the Non-U.S. Holder will be treated as receiving a distribution. In general, any distributions we make to a Non-U.S. Holder of shares of our common stock, to the extent paid out of our current or accumulated earnings and profits (as determined under United States federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate. Any distribution not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. Holder’s adjusted tax basis in its shares of our common stock and, to the extent such distribution exceeds the Non-U.S. Holder’s adjusted tax basis, as gain realized from the sale or other