Company: ARAI
Filing Date: 2025-05-13
Form Type: S-1/A
Source: 0001641172-25-009841
Chunk: 147

Company: Arrive AI Inc.
Filing Date: 2025-05-13
Form: S-1/A
Chunk 147
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-U.S. Holder is an individual who is present in the United States for 183 days or more in the taxable year of the sale, exchange 
 or other disposition of our Common Stock, and certain other requirements are met (in which case the gain would be subject to a flat 
 30% tax, or such reduced rate as may be specified by an applicable income tax treaty, which may be offset by certain U.S. source    
 capital losses, even though the individual is not considered a resident of the United States); or                                   |
| ● | the                                                                                                                                 
 rules of the Foreign Investment in Real Property Tax Act (“FIRPTA”) treat the stock as a “U.S. real property interest”              
 as defined in Section 897 of the Code.                                                                                              |

The FIRPTA rules may apply to a sale, exchange or other disposition of our Common Stock if we are, or were within the shorter of the five-year period preceding the disposition and the Non-U.S. Holder’s holding period, a “U.S. real property holding corporation” (a “USRPHC”), as defined in Section 897 of the Code. In general, we would be a USRPHC if interests in U.S. real estate comprised at least half of the value of our business assets. We do not believe that we are a USRPHC and we do not anticipate becoming one in the future. Even if we become a USRPHC, as long as our Common Stock is regularly traded on an established securities market, such Common Stock will be treated as U.S. real property interests only if beneficially owned by a Non-U.S. Holder that actually or constructively owned more than 5% of our outstanding Common Stock at sometime within the five-year period preceding the disposition.

If any gain from the sale, exchange or other disposition of our Common Stock (1) is effectively connected with a U.S. trade or business conducted by a Non-U.S. Holder, and (2) if required by an applicable income tax treaty between the United States and the Non-U.S. Holder’s country of residence, is attributable to a permanent establishment maintained by such Non-U.S. Holder in the United States, then the gain generally will be subject to U.S. federal income tax at the same graduated rates applicable to U.S. persons, net of certain deductions and credits. If the Non-U.S. Holder is a corporation, under certain circumstances, that portion of its earnings and profits that is effectively connected with its U.S. trade