Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 203

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 203
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 the extent provided
in the Treasury Regulations, a United States person who disposes of stock of a PFIC recognizes gain notwithstanding any provision of
law. No final Treasury Regulations have been promulgated under this statute. Proposed Treasury Regulations were promulgated in 1992 with
a retroactive effective date (the “Proposed PFIC Regulations”). If finalized in their current form, the Proposed PFIC
Regulations would generally require gain recognition by United States persons deemed to exchange Common Shares for New Almonty Shares
pursuant to the Domestication, if Almonty were classified as a PFIC at any time during such United States person’s holding period
in such stock and such person had not made either a QEF election for the first taxable year in which such U.S. Holder owned Common Shares
or in which the Company was a PFIC, whichever is later, or a “mark-to-market” election (each as discussed above). The tax
on any such gain so recognized would be imposed at the rate applicable to ordinary income and an interest charge would apply based on
a complex set of computational rules designed to offset the tax deferral to such stockholders on our undistributed earnings. In addition,
the regulations would provide coordinating rules with Section 367(b) of the Code, whereby, if the gain recognition rule of the Proposed
PFIC Regulations applied to a disposition of PFIC stock that results from a transfer with respect to which Section 367(b) requires the
shareholder to recognize gain or include an amount in income as a distribution under Section 301 of the Code, the gain realized on the
transfer is taxable as an excess distribution under Section 1291 of the Code, and the excess, if any, of the amount to be included in
income under Section 367(b) over the gain realized under Section 1291 is taxable as provided under Section 367(b). See the discussion
above under the section entitled “– Effects of Section 367 on the Domestication”.

It is difficult to
predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted.
The PFIC rules are very complex and are affected by various factors in addition to those described above. Accordingly, U.S. Holders are
urged to consult their own tax advisors concerning the potential application of the PFIC rules to them under their particular circumstances.

U.S. Federal
Income Tax Considerations Associated with the Domestication for Non