Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 121

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 121
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 the Investment Law. In addition, a Preferred
Technological Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain “ Benefitted
Intangible Assets” (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired
from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the Israel
Innovation Authority.

Dividends distributed by a
Preferred Technological Enterprise, paid out of Preferred Technological Income, are generally subject to tax at the rate of 20% or such
lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing
for a reduced tax rate).

The withholding tax rate applicable
to distribution of dividend from such income to non-Israeli residents is 25% (or 30% if distributed to a “substantial shareholder”
at the time of the distribution or at any time during the preceding twelve months period), which may be reduced by applying in advance
for a withholding certificate from the ITA. A “substantial shareholder” is generally a person who, alone or together with
such person’s relative or another person who collaborates with such person on a permanent basis, holds, directly or indirectly,
at least 10% of any of the “ Means of Control” of the corporation. “ Means of control” generally include the right
to vote, receive profits, nominate a director or an executive officer, receive assets upon liquidation or order someone who holds any
of the aforesaid rights how to act, regardless of the source of such right.

In addition, if such dividends
are distributed to a foreign company that holds solely or together with other foreign companies 90% or more in the Israeli company and
other conditions are met (including that less than 25% of the shareholder of the foreign company are Israeli residents), the withholding
tax rate will be 4% (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). However,
if such dividends are paid to an Israeli company, no tax is required to be withheld.

Alarum, CyberKick and Safe-T
Data are currently in a loss position for Israeli tax purposes, while NetNut is profitable. We have obtained a tax ruling from the Israel
Tax Authority regarding NetNut’s status as a preferred Techn