Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 44

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 10
Chunk 44
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 gains arising on the disposition of shares of the Company
unless (i) at any time in the five-year period immediately preceding the disposition, 25% or more of the shares of any class or series
of the capital stock of the Company was owned by (or was under option of or subject to an interest of) the U. S. holder or persons with
whom the U. S. holder did not deal at arm’s length, and (ii) the value of the common shares of the Company at the time of the disposition
derives principally from real property (as defined in the Treaty) situated in Canada. For this purpose, the Treaty defines real property
situated in Canada to include rights to explore for or exploit mineral deposits and other natural resources situated in Canada, rights
to amounts computed by reference to the amount or value of production from such resources, certain other rights in respect of natural
resources situated in Canada and shares of a corporation the value of whose shares is derived principally from real property situated
in Canada.

The
US Internal Revenue Code provides special anti-deferral rules regarding certain distributions received by US persons with respect to,
and sales and other dispositions (including pledges) of stock of, a passive foreign investment company. A foreign corporation, such as
the Company, will be treated as a passive foreign investment company if 75% or more of its gross income is passive income for a taxable
year or if the average percentage of its assets (by value) that produce, or are held for the production of, passive income is at least
50% for a taxable year. The Company believes that it was not a passive foreign investment company for the taxable year ended December
31, 2019 and, furthermore, expects to conduct its affairs in such a manner so that it will not meet the criteria to be considered passive
foreign investment company in the foreseeable future.

  41  

Dividends:

A
Holder will be subject to Canadian withholding tax (“ Part XIII Tax”) equal to 25%, or such lower rate as may be available
under an applicable tax treaty, of the gross amount of any dividend paid or deemed to be paid on common shares. Under the Canada-U. S.
Income Tax Convention (1980) as amended by the Protocols signed on 6/14/1983, 3/28/1984, 3/17/1995, and 7/29/1997 (the “ Treaty”),
the rate of Part XIII Tax applicable