Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 268

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 8
Chunk 268
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 be treated as income from sources
outside the United States for U. S. foreign tax credit purposes. Amounts previously included in income by such Electing U. S. Investor under
the QEF rules generally will not be subject to tax when they are distributed to such Electing U. S. Investor. The Electing U. S. Investor’s
tax basis in ordinary shares or ADSs generally will increase by any amounts so included under the QEF rules and decrease by any amounts
not included in income when distributed.

99

An Electing U. S. Investor will be subject to U. S. federal income
tax on such amounts for each taxable year in which we are a PFIC, regardless of whether such amounts are actually distributed to such
Electing U. S. Investor. However, an Electing U. S. Investor may, subject to certain limitations, elect to defer payment of current U. S.
federal income tax on such amounts, subject to an interest charge. If an Electing U. S. Investor is an individual, any such interest will
be treated as non-deductible “personal interest.”

Any net operating losses or net capital losses of a PFIC will not
pass through to the Electing U. S. Investor and will not offset any ordinary earnings or net capital gain of a PFIC recognized by Electing
U. S. Investors in subsequent years.

So long as an Electing U. S. Investor’s QEF election with
respect to us is in effect with respect to the entire holding period for ordinary shares or ADSs, any gain or loss recognized by such
Electing U. S. Investor on the sale, exchange or other disposition of such ordinary shares or ADSs generally will be long-term capital
gain or loss if such Electing U. S. Investor has held such ordinary shares or ADSs for more than one year at the time of such sale, exchange
or other disposition. Preferential tax rates for long-term capital gain will apply to individual U. S. Investors. The deductibility of
capital losses is subject to limitations.

A U. S. Investor makes a QEF election by completing the relevant
portions of and filing IRS Form 8621 in accordance with the instructions thereto. A QEF election generally may not be revoked without
the consent of the IRS. Upon request, we intend to annually furnish U. S. Investors with information needed in order to complete IRS
Form 8621 (which form would