Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 125

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 125
---
 if we determine that we are not a PFIC for a taxable year, there can be no assurance
that the IRS will agree with our conclusion and that the IRS would not successfully challenge our position. Our status as a PFIC is a
fact-intensive determination made on an annual basis after the end of each taxable year. Accordingly, our U. S. counsel expresses no opinion
with respect to our PFIC status for our taxable year ended December 31, 2024 and also expresses no opinion with regard to our expectations
regarding our PFIC status in the future.

If we are a PFIC in any taxable
year during which a U. S. Holder owns Ordinary Shares, the U. S. Holder could be liable for additional taxes and interest charges under
the “ PFIC excess distribution regime” upon (1) a distribution paid during a taxable year that is greater than 125% of the
average annual distributions paid in the three preceding taxable years, or, if shorter, the U. S. Holder’s holding period for the
Ordinary Shares, and (2) any gain recognized on a sale, exchange or other disposition, including a pledge, of the Ordinary Shares, whether
or not we continue to be a PFIC. Under the PFIC excess distribution regime, the tax on such distribution or gain would be determined by
allocating the distribution or gain ratably over the U. S. Holder’s holding period for Ordinary Shares. The amount allocated to the
current taxable year (i. e., the year in which the distribution occurs or the gain is recognized) and any year prior to the first taxable
year in which we are a PFIC will be taxed as ordinary income earned in the current taxable year. The amount allocated to other taxable
years will be taxed at the highest marginal rates in effect for individuals or corporations, as applicable, to ordinary income for each
such taxable year, and an interest charge, generally applicable to underpayments of tax, will be added to the tax.

If we are a PFIC for any year
during which a U. S. Holder holds Ordinary Shares, we must generally continue to be treated as a PFIC by that holder for all succeeding
years during which the U. S. Holder holds the Ordinary Shares, unless we cease to meet the requirements for PFIC status and the U. S. Holder
makes a “deemed sale” election with respect to the Ordinary Shares. If the election is made, the U. S. Holder will