Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 120

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 120
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 benefits as discussed below. These benefits may include cash grants from the Israeli government and tax benefits based upon, among
other things, the geographic location in Israel of the facility in which the investment is made.

On January 1, 2011, new
legislation amending the Investment Law came into effect, or the 2011 Amendment. The 2011 Amendment introduced a new status of Preferred
Enterprise. Subject to certain conditions, a Preferred Enterprise entitles the company to reduced corporate tax rates, without limitations
on dividends and other distributions, instead of full exemption from corporate tax. These preferred corporate tax rates vary from 7.5%
for Preferred Enterprises residing in a “development zone,” or 16.0% for Preferred Enterprises residing in other zones in
Israel. Dividend distributions are subject to 20% tax rate, subject to the provision of the relevant tax treaty.

In order to gain the status
of Preferred Enterprise, a company must meet the conditions of competitive industrial company that contributes to the GDP or comparative
industrial company in the field of renewable energy.

The Investment Law was significantly
amended effective as of January 1, 2017, or the 2017 Amendment. The 2017 Amendment was enacted as part of the Economic Efficiency Law
that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for two
types of “ Technological Enterprises,” as described below, and is in addition to the other existing tax beneficial programs
under the Investment Law.

The 2017 Amendment provides
that a preferred company, which is defined as either (i) a company incorporated in Israel which is not wholly owned by a governmental
entity, or (ii) a limited partnership that: (a) was registered under the Israeli Partnerships Ordinance; and (b) all of its limited partners
are companies incorporated in Israel, but not all of them are governmental entities; which has, among other things, Preferred Enterprise
status and is controlled and managed from Israel, or a Preferred Company, satisfying certain conditions will qualify as having a “ Preferred
Technological Enterprise” and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “ Preferred
Technological Income,” as defined in the Investment Law. The corporate tax rate may be further reduced to 7.5% with respect to a
Preferred Technological Enterprise located in development zone “ A,” as defined under