Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 196

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 196
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 the U.S. federal income tax consequences of holding our Common Shares and the availability of any tax elections if we are
considered a PFIC in any taxable year.

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QEF Election

A U.S. Holder may also be
able to avoid some of the adverse impacts of the PFIC tax rules outlined above if such U.S. Holder alternatively elected to treat us
as a “qualified electing fund” or “QEF”. Under certain circumstances, a U.S. holder may make a “protective”
QEF election and file protective information returns with respect to their Common Shares. U.S. Holders are urged to consult their own
tax advisors as to the availability and consequences of such an election. Special rules apply for calculating the amount of the foreign
tax credit with respect to excess distributions by a PFIC or, in certain cases, QEF inclusions.

If a U.S. Holder was
eligible for, and timely made, a QEF election, the U.S. Holder would include in income each year for which we are a PFIC (and be subject
to current U.S. federal income tax on) the U.S. Holder’s pro rata share of our ordinary earnings, as ordinary income, and net capital
gains, as long-term capital gain, for our taxable year that ends with or within the U.S. Holder’s taxable year, regardless of whether
such amounts are actually distributed. Any such ordinary income would not be eligible for the favorable rates applicable to qualified
dividend income. The U.S. Holder’s adjusted tax basis in our Common Shares would be increased to reflect taxed but undistributed
earnings and profits. Distributions of earnings and profits that had been previously taxed would result in a corresponding reduction
in the U.S. Holder’s adjusted tax basis in our Common Shares and would not be taxed again. The U.S. Holder would not, however,
be entitled to a deduction for its pro rata share of any losses that we incurred with respect to any year. The U.S. Holder would generally
recognize capital gain or loss on the sale, exchange or other disposition of our Common Shares. A U.S. Holder would generally make a
QEF election with respect to the first year during which we were at any time a PFIC by filing IRS Form 8621 with the U.S. Holder’s
U.S. federal income tax return. The QEF election is made on a shareholder-by-shareholder basis and can only be revoked with