Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 46

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 10
Chunk 46
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sale and the adjusted tax basis of the common shares. The gain or loss will be a capital gain or capital loss if the Company’s
common shares are a capital asset in U. S. Taxpayer’s hands.

  42  

For
federal income tax purposes, a U. S. Taxpayer will be required to include in gross income dividends received on the Company’s common
shares. A U. S. Taxpayer who pays Canadian tax on a dividend on common shares will be entitled, subject to certain limitations, to a credit
(or alternatively, a deduction) against federal income tax liability. A domestic corporation that owns at least 10% of the voting shares
should consult its tax advisor as to applicability of the deemed paid foreign tax credit with respect to dividends paid on the Company’s
common shares.

Under
a number of circumstances, United States Investor acquiring shares of the Company may be required to file an information return with
the Internal Revenue Service Center where they are required to file their tax returns with a duplicate copy to the Internal Revenue Service
Center, Philadelphia, PA 19255. In particular, any United States Investor who becomes the owner, directly or indirectly, of 10% or more
of the shares of the Company will be required to file such a return. Other filing requirements may apply. United States Investors should
consult their own tax advisors concerning these requirements.

The
US Internal Revenue Code provides special anti-deferral rules regarding certain distributions received by US persons with respect to,
and sales and other dispositions (including pledges) of stock of, a passive foreign investment company. A foreign corporation, such as
the Company, will be treated as a passive foreign investment company if 75% or more of its gross income is passive income for a taxable
year or if the average percentage of its assets (by value) that produce, or are held for the production of, passive income is at least
50% for a taxable year. The Company believes that it was not a passive foreign investment company for the taxable year ended December
31, 2019 and, furthermore, expects to conduct its affairs in such a manner so that it will not meet the criteria to be considered passive
foreign investment company in the foreseeable future.

10. F.
Dividends and Paying Agents

The
Company has not declared any dividends on its common shares for the last five years and does not anticipate that it will do so in the
foreseeable future. The present policy of the Company is to