Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 154

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 154
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es on dividends paid by the Company on ordinary shares held through DTC (and in the case of a Non-SA Tax Resident Shareholder, JSE,
provided that procedural requirements to establish an exemption are met). If any non-U. S. jurisdiction imposes taxes on dividends, U. S.
Holders should consult their tax advisers regarding the creditability or deductibility of any such foreign taxes (including any applicable
limitations that may apply either generally or in their particular circumstances).

Sale or Other Taxable Disposition
of Ordinary Shares

This discussion assumes that sales or dispositions of our ordinary shares
will not be subject to any non-U. S. tax. U. S. Holders should consult their tax advisers regarding the U. S. federal income tax consequences
of the imposition of any non-U. S. taxes on dispositions of our ordinary shares in general and in their particular circumstances.

A U. S. Holder will generally recognize
capital gain or loss on a sale or other taxable disposition of ordinary shares, which will be long-term capital gain or loss if, at the
time of the sale or disposition, the U. S. Holder has owned the ordinary shares for more than one year. The amount of gain or loss will
equal the difference between the amount realized on the sale or disposition and the U. S. Holder’s tax basis in the ordinary shares
disposed of, in each case as determined in U. S. dollars. A U. S. Holder’s gain or loss will generally be treated as U. S.-source income
or loss for foreign tax credit purposes. U. S. Holders that sell ordinary shares for an amount denominated in a non-U. S. currency should
consult their tax advisers regarding the exchange rate at which the amount received should be translated to U. S. dollars, and whether
any U. S.-source foreign currency gain or loss may be required to be recognized as a result of the sale. Long-term capital gains recognized
by non-corporate U. S. Holders are taxed at a rate that is lower than the rate applicable to ordinary income. The deductibility of capital
losses is subject to limitations.

Passive Foreign Investment Company
Rules

In general, a non-U. S. corporation
is a PFIC for U. S. federal income tax purposes for any taxable year in which (i) 50% or more of the value of its assets (generally determined
based on the average of the quarterly values of its