Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 37

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 37
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 the Company for taxation years beginning on or after January 1, 2025. Certain other jurisdictions
in which we operate have enacted or substantively enacted Pillar Two legislation, certain aspects of which will generally be effective
for us for taxation years beginning on January 1, 2024. A number of jurisdictions are implementing, or considering the implementation
of, new domestic tax regimes, or are planning to revise existing tax regimes, in response to the global Pillar Two tax initiative.

Further, on December 27,
2023, Bermuda enacted the CIT Act. Entities subject to tax under the CIT Act are the Bermuda constituent entities of multi-national groups.
A multi-national group is defined under the CIT Act as a group with entities in more than one jurisdiction with consolidated revenues
of at least EUR750 million for two of the four previous fiscal years. If Bermuda constituent entities of a multi-national group are subject
to tax under the CIT Act, such tax is charged at a rate of 15% of the net taxable income of such constituent entities as determined in
accordance with and subject to the adjustments set out in the CIT Act. Tax is chargeable under the CIT Act for tax years starting on or
after January 1, 2025. In addition, the CIT Act includes transition rules, including carryforward tax losses incurred in the five
fiscal years preceding the effective date or increases in the tax basis of assets and liabilities. The CIT Act also provides relief from
double taxation via foreign tax credit based on the adjusted amount of foreign taxes accrued by the group. The CIT Act is designed as
a covered tax for the purposes of the OECD’s Global Anti-Base Erosion Rules (“GloBE Model Rules”), meaning
the CIT Act does not presently apply an income-inclusion rule or under taxed profits rule in the same way as the GloBE Model
Rules do. While we expect that Allied World would be treated as a Bermuda constituent entity for the purposes of the CIT Act and
therefore subject to taxation in Bermuda, we do not currently expect the CIT Act to have a material adverse effect on our results of operations
going forward. Future developments and guidance under the GloBE Model Rules may impact Bermuda’s implementation of its corporate
tax regime, and any future changes to the Bermuda corporate income tax regime may impact our tax liability, financial condition and results
of operations, and could increase our administrative expenses. This is generally expected to result in an increase in the Company’s
liability for taxes in Bermuda