Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 118

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 118
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 12-month
period, such gain will be taxed at the rate of 30.0%. As of January 1, 2025, an additional income tax at a rate of 5% is imposed on high
earners whose annual taxable income exceeds certain thresholds (NIS 721,560) (2% of this tax is imposed on passive income that exceeds
the thresholds). During the years 2017-2024 the rate of this tax was 3%.

Moreover, capital gains derived
by a shareholder who is a dealer or trader in securities, or to whom such income is otherwise taxable as ordinary business income, are
taxed in Israel at ordinary income rates (currently, up to 47.0% +3% for individuals and the corporate tax rate is 23.0%).

Taxation of
Non-Israeli Shareholders on Receipt of Dividends

Non-Israeli residents (individuals
or corporations) are generally subject to Israeli income tax on the receipt of dividends paid on our Ordinary Shares at the rate of 25.0%
(or 30.0% if such person or entity is a “substantial shareholder” at the time receiving the dividend or on any date in the
12 months preceding such date), which tax will be withheld at source, unless a tax certificate is obtained from the Israeli Tax Authority,
or ITA, authorizing withholding-exempt remittances or a reduced rate of tax pursuant to an applicable tax treaty.

Notwithstanding the foregoing,
a dividend paid by the Company arising from the profits of a preferred enterprise and/or a preferred technological enterprise entitled
to tax benefits under the Capital Investment Encouragement Law shall generally be taxable at 20% for individuals, unless subject to a
lower rate under the relevant double taxation treaties. Corporations will generally be subject to a withholding tax rate of either 20%
(Preferred Enterprise) or a reduced rate of 4% (Preferred Technological Enterprise), subject to fulfillment of certain conditions.

A non-Israeli resident who
receives dividends from which tax was withheld is generally exempt from the duty to file tax returns in Israel in respect of such income,
provided such income was not derived from a business conducted in Israel by such taxpayer, and such taxpayer has no other taxable sources
of income in Israel.

For example, under the Convention
Between the Government of the United States of America and the Government of Israel with Respect to Taxes on Income, as amended, Israeli
withholding tax on dividends paid to a U. S.