Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 138

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 138
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 of Class A Ordinary Shares and Warrants to U. S. Holders

Distributions on Class A Ordinary Shares

If REE makes distributions of cash or property on the Class A Ordinary Shares, such distributions will be treated first as a dividend to the extent of REE’s current and accumulated earnings and profits (as determined for U. S. federal income tax purposes), and then as a tax-free return of capital to the extent of the U. S. Holder’s tax basis, with any excess treated as gain from the sale or exchange of the shares. The amount of any such distribution will include any amounts withheld by REE (or another applicable withholding agent). If REE does not provide calculations of its earnings and profits under U. S. federal income tax principles, a U. S. Holder should expect all cash distributions to be reported as dividends for U. S. federal income tax purposes. Any dividend will not be eligible for the dividends received deduction allowed to corporations in respect of dividends received from U. S. corporations.

Subject to the discussions above under “ - Utilization of 10X Capital’s Tax Attributes and Certain Other Adverse Tax Consequences to REE and REE’s Shareholders” and below under “ - Passive Foreign Investment Company Rules,” dividends received by certain non-corporate U. S. Holders (including individuals) may be “qualified dividend income,” which is taxed at the lower applicable capital gains rate, provided that:

• either (a) the shares are readily tradable on an established securities market in the U. S. or (b) REE is eligible for the benefits of a qualifying income tax treaty with the U. S. that includes an exchange of information program;

Table of C ontents

• REE is neither a PFIC (as discussed below under below under “ - Passive Foreign Investment Company Rules”) nor treated as such with respect to the U. S. Holder for REE’s taxable year in which the dividend is paid or the preceding taxable year;

• the U. S. Holder satisfies certain holding period requirements;

• the U. S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related property; and

• the taxpayer does not take the dividends into account as investment income under Code Section 163(d)(4)(B).

There can be no assurances that REE will be eligible for benefits of an applicable comprehensive income tax treaty between the U. S. and Israel. In addition, there also can be no assurance that