Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 145

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 10
Chunk 145
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 in or derived from Singapore at the rate
of 22% up to year of assessment (“ YA”) 2023. With effect from YA2024, the non-resident tax rate is 24%.

Corporate Income Tax

A corporate taxpayer is regarded as resident in Singapore
for Singapore tax purposes if the control and management of its business is exercised in Singapore.

Corporate taxpayers who are Singapore
tax residents are subject to Singapore income tax on income accruing in or derived from Singapore and, subject to certain exceptions,
on foreign-sourced income received or deemed to be received in Singapore. Foreign-sourced income in the form of dividends, branch profits
or after June 01, 2003 are exempt from tax if certain prescribed conditions are met, including the following:

  (i)      such income is subject to tax of a similar character to income                 

  (ii)      at the time the income is received in Singapore, the highest                                                                              

Certain concessions and clarifications have also been announced
by the Inland Revenue Authority of Singapore (“ IRAS”) with respect to such conditions.

A non-resident corporate taxpayer
is subject to income tax on income that is accrued in or derived from Singapore, and on foreign-sourced income received or deemed received
in Singapore, subject to certain exceptions.

The corporate tax rate in Singapore
is currently 17%. In addition, 75% of up to the first S$10,000 of a company’s annual normal chargeable income, and 50% of up to
the next S$190,000, is exempt from corporate tax from the YA2020 onwards. The remaining chargeable income (after the tax exemption) will
be fully taxable at the prevailing corporate tax rate.

New companies will also, subject
to certain conditions and exceptions, be eligible for tax exemption on 75% of up to the first S$100,000 of a company’s annual normal
chargeable income, and 50% of up to the next S$100,000, a year for each of the Company’s first three YAs from YA2020 onwards. The
remaining chargeable income (after the tax exemption) will be taxed at the applicable corporate tax rate.

As part of its budget for 2024,
the Singapore government has announced a Corporate Income Tax rebate (“ CIT Rebate”) of 50% of the corporate tax payables,
to assist companies to manage rising costs, available to all taxpaying companies, whether tax resident or not, for YA 2024