Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 153

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 153
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. S. federal income tax principles, U. S. Holders generally should expect that distributions will be treated as dividends.
Dividends will not be eligible for the dividends-received deduction generally available to U. S. corporations under the Code. Subject to
applicable limitations, (including a minimum holding period requirement), dividends paid by “qualified foreign corporations”
to certain non-corporate U. S. investors are taxable at a preferential rate applicable to long-term capital gains. A non-U. S. corporation
is treated as a qualified foreign corporation with respect to dividends paid on stock that is readily tradable on certain U. S. securities
markets, such as the Nasdaq. The preferential rate does not apply if the non-U. S. corporation is a PFIC (or is treated as a PFIC with
respect to a particular U. S. Holder) for a taxable year of ours in which the dividend is paid or the preceding taxable year. Non-corporate
U. S. Holders should consult their tax advisers regarding the availability of the preferential rate and any limitations that may apply
in their particular circumstances.

Dividends will be included in
a U. S. Holder’s income on the date of receipt. The amount of any dividend income paid in a currency other than the U. S. dollar will
be the U. S. dollar amount calculated by reference to the spot rate in effect on the date of receipt, regardless of whether the payment
is in fact converted into U. S. dollars on such date. If the dividend is converted into U. S. dollars on the date of receipt, a U. S. Holder
generally should not be required to recognize foreign currency gain or loss in respect of the amount received. A U. S. Holder may have
foreign currency gain or loss if the dividend is converted into U. S. dollars after the date of receipt. Dividends will be treated as foreign-source
income for foreign tax credit purposes, which may be relevant to U. S. Holders in calculating their foreign tax credit limitation. Foreign
currency gain or loss generally will be treated as U. S.-source income or loss for foreign tax credit purposes.

As described under Item 10. E.
“ Tax Considerations - Singaporean Tax Considerations - Dividend Distributions” and “ Tax Considerations - South
African Tax Considerations - Non-SA Tax Resident Shareholders,” Singapore and South Africa generally do not impose withholding
tax