Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 181

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 10
Chunk 181
---
Item
10. Additional Information— E. Taxation— Israeli Tax Considerations

”, actually or constructively received by a U. S.
Holder with respect to our Ordinary Shares (or, in the case of ADSs, received by the depositary) will be taxable to the U. S. Holder as
foreign source dividend income to the extent of our current and accumulated earnings and profits as determined under U. S. federal income
tax principles.

The U. S. Holder will not be eligible for any dividends
received deduction in respect of the dividends paid by us. Distributions in excess of earnings and profits will be non-taxable to the
U. S. Holder to the extent of the U. S. Holder’s adjusted tax basis in its Ordinary Shares or ADSs. Distributions in excess of such
adjusted tax basis will generally be taxable to the U. S. Holder as capital gain from the sale or exchange of property as described below
under “ Sale or Other Disposition of Ordinary Shares or ADSs.” If we do not report to a U. S. Holder the portion of a distribution
that exceeds earnings and profits, then the distribution will generally be taxable as a dividend. The amount of any distribution of property
other than cash will be the fair market value of that property on the date of distribution.

Under the Code, certain dividends received by non-corporate
U. S. Holders will be subject to a maximum federal income tax rate of 20%. This reduced income tax rate is only applicable to dividends
paid by a “qualified foreign corporation” that is not a PFIC for the year in which the dividend is paid or for the preceding
taxable year, and only with respect to Ordinary Shares or ADSs held by a qualified U. S. Holder (i. e., a non-corporate holder) for a minimum
holding period (generally 61 days during the 121-day period beginning 60 days before the ex-dividend date). As discussed below, however,
we will likely be a “passive foreign investment company” (see “ Item 10. Additional Information - E. Taxation - U. S.
Federal Income Tax Considerations - Passive Foreign Investment Companies” below) for our current taxable year and future
taxable years. Accordingly, dividends paid by us to individual U. S. Holders may not be eligible for the reduced income tax rate applicable
to qualified dividends. You should consult your own tax advisor regarding the availability of this preferential