Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 108

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 10
Chunk 108
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 at the lower capital gains rate applicable
to qualified dividend income, provided that (1) the Ordinary Shares are readily tradable on an established securities market in the United
States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes an exchange
of information program, (2) we are not a passive foreign investment company (as discussed below) for either our taxable year in which
the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. You are urged to consult your
tax advisors regarding the availability of the lower rate for dividends paid with respect to our Ordinary Shares, including the effects
of any change in law after the date of this Annual Report.

To
the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U. S. federal
income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the
amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under U. S. federal income tax principles. Therefore, a U. S. Holder should expect that a distribution will be treated as a
dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described
above.

Taxation
of dispositions of Ordinary Shares

Subject
to the passive foreign investment company rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other
taxable disposition of a share equal to the difference between the amount realized (in U. S. dollars) for the share and your tax basis
(in U. S. dollars) in the Ordinary Shares. The gain or loss will be capital gain or loss. The 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. If you are a non-corporate
U. S. Holder, including an individual U. S. Holder, who has held the Ordinary Shares