Company: NCEL
Filing Date: 2025-10-24
Form Type: POS AM
Source: 0001213900-25-102149
Chunk: 51

Company: NewcelX Ltd.
Filing Date: 2025-10-24
Form: POS AM
Chunk 51
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).

Taxation

NLS is a Swiss company, subject
to taxation in the Canton of Zurich as from December 10, 2021 onwards (formerly, Canton of Nidwalden). The Company is taxed at a
current effective income tax rate of approximately 19% (including direct federal as well as cantonal/communal taxes). In addition, an
annual capital tax rate of approximately 0.16% is levied on the net equity of the Company.

Based on a vote by eligible
Swiss voters in Switzerland on May 19, 2019, Switzerland reformed certain elements of its corporate tax law which impact the taxation
of NLS (including the abolition of the mixed company privilege at cantonal/communal level). These new federal regulations went into effect
as of January 1, 2020. Regarding the implementation of certain measures on the cantonal level, a referendum was put up for a vote
in the Canton of Nidwalden. Following a vote during the year ended December 31, 2020, the referendum passed and took effect in the
Canton of Nidwalden. Transitional measures were implemented for companies that were previously under the abolished mixed company regime
at cantonal/communal levels to prevent over-taxation on hidden reserves generated under said regime. NLS applied for the special tax rate
solution that provides for a separate taxation over five years of the portion of the profit based on realization of hidden reserves and
goodwill which were previously not taxed under the mixed company regime. After the company changed its registered office, the same transitional
measure has been applied for and granted in the canton of Zurich.

Swiss Federal Withholding Tax on Dividends and other Distributions

Dividend payments and similar
cash or in-kind distributions on the Common Shares (including dividends on liquidation proceeds and stock dividends) that the Company
makes to shareholders are subject to Swiss federal withholding tax (Verrechnungssteuer) at a rate of 35% on the gross amount of the dividend.
The Company is required to withhold the Swiss federal withholding tax from the dividend and remit it to the Swiss Federal Tax Administration.
Distributions based upon a capital reduction (Nennwertrückzahlungen) and reserves paid out of capital contribution reserves (Reserven
aus Kapitaleinlagen) are not subject to Swiss federal withholding tax.

The redemption of Common Shares
may under certain circumstances (in particular, if the Common Shares are redeemed for subsequent