Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 212

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 212
---
 tax rates for “qualified
dividend income” and long-term capital gains are applicable for U. S. Holders that are individuals, estates or trusts. For this
purpose, “qualified dividend income” means, inter alia, dividends received from a “qualified foreign corporation,”
provided that certain holding-period requirements and other conditions are satisfied. A “qualified foreign corporation” is
a corporation that is entitled to the benefits of a comprehensive tax treaty with the United that the Secretary of Treasury of the United
States determines is satisfactory for purposes of this provision and which includes an exchange of information program. The IRS has stated
that the Treaty satisfies this requirement and we believe we are eligible for the benefits of the Treaty. In addition, our dividends
will be qualified dividend income if our Common Shares are readily tradable on Nasdaq or another established securities market in the
United States. However, we will not be a qualified foreign corporation if we are a passive foreign investment company, or PFIC, as described
below under “ Passive Foreign Investment Company Rules,” for the taxable year in which we pay a dividend or for the preceding
taxable year.

Cash distributions paid by us in Canadian dollars
will be included in the income of U. S. Holders at a U. S. dollar amount based upon the spot rate of exchange in effect on the date the
dividend is includible in the income of the U. S. Holder, and U. S. Holders will have a tax basis in such Canadian dollars for U. S. federal
income tax purposes equal to such U. S. dollar value. If the U. S. Holder subsequently converts the Canadian dollars into U. S. dollars
or otherwise disposes of them, any subsequent gain or loss in respect of such Canadian dollars arising from exchange rate fluctuations
will be U. S. source ordinary exchange gain or loss.

Subject to certain conditions and limitations,
non-refundable withholding taxes (at a rate not in excess of any applicable tax treaty rate), if any, on dividends paid by us may be
treated as foreign taxes eligible for credit against a U. S. Holder’s U. S. federal income tax liability under the U. S. foreign tax
credit rules. However, as a result of recent changes to the U. S. foreign tax credit rules, a withholding tax generally will need to satisfy
certain additional requirements in order to be considered a creditable tax for a U. S. Holder. We have not determined whether