Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 286

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 286
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. Holders that are individuals, estates
or trusts. For this purpose, “qualified dividend income” means, inter alia, dividends received from a “qualified foreign
corporation.” A “qualified foreign corporation” is a corporation that is entitled to the benefits of a comprehensive
tax treaty with the United States which includes an exchange of information program. The IRS has stated that the Switzerland/U. S. Tax
Treaty satisfies this requirement and we believe we are eligible for the benefits of that treaty.

In addition, our
dividends will be qualified dividend income if our common shares are readily tradable on Nasdaq or another established securities
market in the United States. Dividends will not qualify for the preferential rate if we are treated, in the year the dividend is
paid or in the prior year, as a PFIC, as described below under “ Passive Foreign Investment Companies.” A U. S. Holder
will not be entitled to the preferential rate: (1) if the U. S. Holder has not held our common shares for at least 61 days of the
121-day period beginning on the date which is 60 days before the ex-dividend date, or (2) to the extent the U. S. Holder is under an
obligation to make related payments on substantially similar property. Any days during which the U. S. Holder has diminished its risk
of loss on our common shares are not counted towards meeting the 61-day holding period. Finally, U. S. Holders who elect to treat the
dividend income as “investment income” pursuant to Code section 163(d)(4) will not be eligible for the preferential rate
of taxation.

The amount of a distribution
with respect to our common shares will be measured by the amount of the fair market value of any property distributed, and for U. S. federal
income tax purposes, the amount of any Swiss taxes withheld therefrom. Cash distributions paid by us in CHF will be included in the income
of U. S. Holders at a U. S. dollar amount based upon the spot rate of exchange in effect on the date the dividend is includible in the income
of the U. S. Holder, and U. S. Holders will have a tax basis in such CHF for U. S. federal income tax purposes equal to such U. S. dollar
value. If the U. S. Holder subsequently converts the CHF into U.