Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 157

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 10
Chunk 157
---
 rate of exchange on the settlement date). A U.S. holder will have a tax basis in the foreign currency received equal to that U.S. dollar amount, and generally will recognize foreign currency gain or loss on a subsequent conversion or other disposal of the foreign currency. This foreign currency gain or loss generally will be treated as U.S. source ordinary income or loss for foreign tax credit limitation purposes. If such foreign currency is converted into U.S. dollars on the date received by the U.S. holder, a cash basis or electing accrual basis U.S. holder should not recognize any gain or loss on such conversion.
 
Passive Foreign Investment Company
 
A non-U.S. corporation will be a PFIC for U.S. federal income tax purposes for any taxable year if either:
 

●                                                                       75%                                                                    
            or more of its gross income for such year is “passive income” which for this purpose generally includes dividends, interest,       
           royalties, rents and gains from commodities and securities transactions and gains from assets that produce passive income; or       
-----------------------------------------------------------------------------------------------------------------------------------------------
●                                                                                                                                           50%
    or more of the value of its gross assets (based on an average of the quarterly values of the gross assets) during such year is attributable
                                                        to assets that produce passive income or are held for the production of passive income.
 
Passive income does not include rents and royalties derived from the active conduct of a trade or business. If the stock of a non-U.S. corporation is publicly traded for the taxable year, the asset test is applied using the fair market value of the assets for purposes of measuring such corporation’s assets. If we own at least 25% (by value) of the stock of another corporation, we will be treated, for purposes of the PFIC tests, as owning our proportionate share of the other corporation’s assets and receiving our proportionate share of the other corporation’s income for purposes of the PFIC income and asset tests. If the stock of a non-U.S. corporation is publicly-traded for the taxable year, the asset test is applied using the fair market value of the assets for purposes of measuring such corporation’s assets. If we were a PFIC in any year during a U.S. holder’s holding period for our ordinary shares, we would ordinarily continue to be treated as a PFIC for each subsequent year during which the U.S. holder owned the ordinary shares. Based on the composition of our assets and income, we believe that we should not be treated as a PFIC