Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 127

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 127
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 election. The U. S. Holder’s tax basis in Ordinary Shares would be
adjusted to reflect any income or loss recognized as a result of the mark-to-market election. Any gain from a sale, exchange or other
disposition of Ordinary Shares in any taxable year in which we are a PFIC would be treated as ordinary income and any loss from such sale,
exchange or other disposition would be treated first as ordinary loss (to the extent of any net mark-to-market gains previously included
in income) and thereafter as capital loss.

A mark-to-market election
will not apply to Ordinary Shares for any taxable year during which we are not a PFIC, but will remain in effect with respect to any subsequent
taxable year in which we become a PFIC. Such election will not apply to any non-U. S. subsidiaries that we may organize or acquire in the
future. Accordingly, a U. S. Holder may continue to be subject to tax under the PFIC excess distribution regime with respect to any lower-tier
PFICs that we may organize or acquire in the future notwithstanding the U. S. Holder’s mark-to-market election for the Ordinary Shares.

The tax consequences that
would apply if we are a PFIC would also be different from those described above if a U. S. Holder were able to make a valid QEF election.
At this time, we do not expect to provide U. S. Holders with the information necessary for a U. S. Holder to make a QEF election. Prospective
investors should assume that a QEF election will not be available.

Each U. S. person that is an
investor of a PFIC is generally required to file an annual information return on IRS Form 8621 containing such information as the U. S.
Treasury Department may require. The failure to file IRS Form 8621 could result in the imposition of penalties and the extension of the
statute of limitations with respect to U. S. federal income tax.

The U. S. federal income tax rules relating
to PFICs are very complex. U. S. Holders are strongly urged to consult their own tax advisors with respect to the impact of PFIC status
on the ownership and disposition of Ordinary Shares, the consequences to them of an investment in a PFIC, any elections available with
respect to the Ordinary Shares and the IRS information reporting obligations with respect to the ownership and disposition of Ordinary
Shares of a PFIC.

Distributions

We do not