Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 119

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 119
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 resident for treaty purposes may not, in general, exceed 25.0%, or 15.0% in the case of dividends
paid out of the profits of an Approved Enterprise, subject to certain conditions. Where the recipient is a U. S. corporation owning 10.0%
or more of the issued and outstanding voting shares of the paying corporation during the part of the paying corporation’s taxable
year which precedes the date of payment of the dividend and during the whole of its prior taxable year (if any) and not more than 25.0%
of the gross income of the paying corporation for such prior taxable year (if any) consists of certain interest or dividends and the dividend
is not paid from the profits of an Approved Enterprise, the Israeli tax withheld may not exceed 12.5%, subject to certain conditions.

Capital Gains
Income Taxes Applicable to Non-Israeli Shareholders

Provided certain conditions
are met, non-Israeli resident shareholders are generally exempt from Israeli capital gains tax on any gains derived from the sale, exchange
or disposition of our Ordinary Shares, provided that such gains were not derived from a permanent establishment or business activity of
such shareholders in Israel. However, non-Israeli corporations’ shareholders will not be entitled to the foregoing exemptions if
Israeli residents (i) have a controlling interest of more than 25.0% in such non-Israeli corporation or (ii) are the beneficiaries
of or are entitled to 25.0% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly.

Regardless of whether shareholders
may be liable for Israeli income tax on the sale of our Ordinary Shares, the payment of the consideration may be subject to withholding
of Israeli tax at the source. Accordingly, shareholders may be required to demonstrate that they are exempt from tax on their capital
gains in order to avoid withholding at source at the time of sale.

Law for the
Encouragement of Capital Investments

The Law for the Encouragement
of Capital Investments, 5719-1959, or the Investment Law, provides certain incentives for capital investments in production facilities
(or other eligible intangible assets) by “ Industrial Enterprises” (as defined under the Investment Law). Generally, an investment
program that is implemented in accordance with the provisions of the Investment Law, referred to as an Approved Enterprise, a Beneficiary
Enterprise, a Preferred Enterprise, a Preferred Technological Enterprise, or a Special Preferred Technological Enterprise, is entitled
to