Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
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Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
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TC. Individual SA Tax Resident Shareholders
who choose to hold their shares through DTC will need to ensure they have sufficient annual single discretionary allowance, trusts and
SA corporates would require foreign direct investment allowance clearance in addition to SARB approval for this purpose.

South African dividend tax at
20% will be withheld on any cash dividends declared and paid by the Company to SA Tax Resident Shareholders holding Company ordinary shares
listed on the JSE, subject to any applicable exemptions that may apply.

No South African dividend tax
will be withheld on any cash dividends declared and paid by the Company to SA Tax Resident Shareholders holding Company ordinary shares
through DTC. Such dividends will be subject to income tax in South Africa in the hands of the SA Tax Resident Shareholders.

A controlled foreign company (“ CFC”)
is a non-South African company in which more than 50% of the participation rights/voting rights are directly or indirectly held/exercisable
by SA Tax Residents who are not headquarter companies. Certain profits of CFCs are included in the taxable income of certain SA Tax Resident
ordinary shareholders.

The Company’s shares are not
held more than 50% by SA Tax Resident ordinary shareholders and thus the Company is not currently a CFC.

The shareholder base of the Company,
classified either as SA Tax Resident Shareholders or non-SA Tax Resident Shareholders, may vary over time. Where the Company achieves
CFC status in future, only those SA Tax Resident Shareholders holding, alone or together with any connected person, 10% or more of the
Company’s ordinary shares must include in their taxable income (i. e. impute unless any of the exemptions from imputation apply - 
see below) their proportion of the “profit” of the Company, with such proportion being their proportional shareholding equivalent
to the percentage of their shareholding in the Company’s ordinary shares.

SA Tax Resident Shareholders who,
together with connected persons, will acquire more than 10% of the Company’s ordinary shares in future are advised to obtain tax
advice regarding whether they will have a South African tax exposure as a result of the Company potentially being a CFC as at that date,
having regard to the Company’s shareholder base as at that point in time.

SA Tax Resident Shareholders
that dispose of their Company ordinary shares will be subject to either income tax (in the case of share dealers) or capital gains tax
(in the case of capital investors).

Non-SA Tax Resident Shareholders

No