Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 325

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 325
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 negatively affect our results.

Under
current Cayman Islands law, we are not obligated to pay any taxes in the Cayman Islands on either income or capital gains. The Governor-in-Cabinet
of Cayman Islands has granted us an exemption from the imposition of any such tax on us for twenty years from April 23, 2013. We cannot
be assured that after such date we would not be subject to any such tax. If we were to become subject to taxation in the Cayman Islands,
our financial condition and results of operations could be significantly and negatively affected.

We
may be subject to United States federal income taxation.

We
are incorporated under the laws of the Cayman Islands and intend to operate in a manner that will not cause us to be treated as engaging
in a United States trade or business and will not cause us to be subject to current United States federal income taxation on our income.
However, because there are no definitive standards provided by the Internal Revenue Code of 1986, as amended (the “Code”),
regulations or court decisions as to the specific activities that constitute being engaged in the conduct of a trade or business within
the United States, and as any such determination is essentially factual in nature, we cannot assure you that the United States Internal
Revenue Service, or the IRS, will not successfully assert that we are engaged in a trade or business in the United States and thus are
subject to current United States federal income taxation.

23

We
may be treated as a PFIC, in which case a U.S. holder of our ordinary shares should be subject to disadvantageous rules under U.S. federal
income tax laws.

Significant
potential adverse United States federal income tax consequences generally apply to any United States person who owns shares in a “passive
foreign investment company”, or PFIC. In general, a non-U.S. corporation is classified as a PFIC for a taxable year in which, after
taking into account the income and assets of the corporation and certain subsidiaries pursuant to certain look-through rules, either
(i) 75% or more of its gross income is passive income, or (ii) 50% or more of the average quarterly value of its gross assets is attributable
to assets that produce passive income or are held for the production of passive income.

Passive
income generally includes interest, dividends and other investment income. However, the income derived in the active conduct of an insurance
business is excluded from the term “passive income” if (i