Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 92

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 92
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 to such credit.

Taxation of the Sale, Exchange or other
Disposition of Ordinary Shares or ADSs

Except as provided under the
PFIC rules described below under “ - Passive Foreign Investment Companies,” upon the sale, exchange or other disposition
of our ordinary shares or ADSs, a U. S. Holder will recognize capital gain or loss in an amount equal to the difference between such U. S.
Holder’s tax basis for the ordinary shares or ADSs, determined in U. S. dollars, and the U. S. dollar value of the amount realized
on the disposition (or its U. S. dollar equivalent determined by reference to the spot rate of exchange on the date of disposition, if
the amount realized is denominated in a foreign currency). The gain or loss realized on the sale, exchange or other disposition of ordinary
shares or ADSs will be long-term capital gain or loss if the U. S. Holder has a holding period of more than one year at the time of the
disposition. For foreign tax credit limitation purposes, gain or loss recognized upon a disposition generally will be treated as from
sources within the United States. However, in limited circumstances, the Treaty can re-source U. S. source income as Australian source
income. Individuals who recognize long-term capital gains may be taxed on such gains at reduced rates of tax. The deduction of capital
losses is subject to various limitations.

You should consult your own
tax advisor regarding the availability of a foreign tax credit or deduction in respect of any Australian tax imposed on a sale or other
disposition of ordinary shares or ADSs. See “Australian Tax Considerations - Tax on Sales or other Dispositions of Shares.”

Passive Foreign Investment Companies

Special U. S. federal income
tax laws apply to U. S. taxpayers who own shares of a corporation that is a PFIC. We will be treated as a PFIC for U. S. federal income
tax purposes for any taxable year that either:

  75% or more of our gross income (including our pro rata share of gross income for any company, in which we are considered to own 25% or more of the shares by value), in a taxable year is passiv...  

  At least 50% of our assets generally determined on the basis of a quarterly average and based upon fair market value (including our pro rata share of the assets of any company in which we are c...  
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