Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 116

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 116
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 assure you that the appropriate tax authorities or the courts will accept the
views expressed in this discussion. This summary is based on laws and regulations in effect as of the date of this annual report on Form
20-F and does not take into account possible future amendments which may be under consideration.

General Corporate
Tax Structure in Israel

In 2024, Israeli resident
companies like us are generally subject to corporate tax at the rate of 23.0%. However, the effective tax rate payable by a company that
derives income from a Preferred Enterprise or Preferred Technological Enterprise (as discussed below) may be considerably less.

Capital gains derived by an
Israeli resident company are generally subject to tax at the same rate as the corporate tax rate. Under Israeli tax legislation, a corporation
will be considered as an “ Israeli resident” for tax purposes if it meets one of the following: (a) it was incorporated
in Israel; or (b) the management and control of its business are exercised in Israel.

Taxation of
our Israeli Individual Shareholders on Receipt of Dividends

Israeli residents who are
individuals are generally subject to Israeli income tax for dividends paid on our Ordinary Shares (other than bonus shares or share dividends)
at a rate of 25.0%, or 30.0% if the recipient of such dividend is a “substantial shareholder” (as defined below) at the time
of distribution or at any time during the preceding 12-month period.

As of January 1, 2017,
an additional income tax at a rate of 3.0% is imposed on high earners whose annual taxable income or gain exceeds certain thresholds (NIS 721,560
for 2024). On January 1, 2025, the tax rate on passive income that exceeded the thresholds was increased to 5%.

A “substantial Shareholder”
is generally a person who alone, or together with his or her relative, as defined under section 88 of the Israeli Income Tax Ordinance
[New Version], 1961, or the Israeli Tax Ordinance, or another person who collaborates with him based on an agreement on substantive matters
of the company on a regular basis, holds, directly or indirectly, at least 10.0% of any of the “means of control” of the corporation.
“ Means of control” generally include the right to vote in a general meeting of shareholders or receive profits, nominate a
director or an officer, receive assets upon liquidation,