Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 146

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 146
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. Companies
that have employed at least one local employee in 2023 will receive $2,000 in cash payout (referred to as “ CIT Rebate Cash Grant”).
Such companies will therefore receive a minimum benefit of $2,000. The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant
that a company may receive is $40,000.

In its Budget 2025, in order to
provide support for the cash flow requirements of companies, the Singapore government announced a Corporate Income Tax rebate (“ CIT
Rebate”) of 50% of the corporate tax payable to all taxpaying companies, whether tax resident or not, for YA 2025. Active companies
that have employed at least one local employee in 2024 (referred to as “local employee condition”) will receive a minimum
benefit of $2,000 in the form of a CIT Rebate Cash Grant. The total maximum benefits of the CIT Rebate and CIT Rebate Cash Grant that
a company may receive is $40,000.

Under Pillar Two of the Base Erosion
and Profit Shifting (“ BEPS”) 2.0 initiative, the Singapore Pillar Two legislation relating to the Income Inclusion Rule (“ IIR”),
through the Multinational Top up Tax (“ MTT”) and Domestic Top-up Tax (“ DTT”), has been officially enacted on January
01, 2025. A minimum effective tax rate of 15% on businesses’ profits from financial years starting on or after January 01, 2025
will be imposed on relevant Multinational Enterprise (“ MNE”) with annual group revenue of EUR 750 million or more in at least
two of the four preceding financial years (referred to as “in-scope MNE groups”), in line with the Pillar Two Global Anti-Base
Erosion (“ GloBE”) Model Rules. As at February 28, 2025, the Group is not in-scope.

Dividend Distributions

All Singapore-resident companies are currently under the
one-tier corporate tax system (“one-tier system”).

Dividends received in respect
of our ordinary shares by either a resident or non-resident of Singapore are not subject to Singapore withholding tax, on the basis that
we are a tax resident of Singapore and under the one-tier system.

Under the one-tier system, the
tax on corporate profits is final and dividends paid by a Singapore resident company are tax exempt in the hands of