Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 90

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 90
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 will be required to include in gross income as ordinary income the amount of any distribution
paid on the ordinary shares or ADSs (including the amount of any tax withheld on the date of the distribution), to the extent that such
distribution does not exceed our current and accumulated earnings and profits, as determined for U. S. federal income tax purposes. The
amount of a distribution which exceeds our earnings and profits will be treated first as a non-taxable return of capital, reducing the
U. S. Holder’s tax basis for the ordinary shares or ADSs to the extent thereof, and then capital gain. We do not expect to maintain
calculations of our earnings and profits under U. S. federal income tax principles and, therefore, U. S. Holders should expect that the
entire amount of any distribution generally will be reported as dividend income.

In general, preferential tax
rates for “qualified dividend income” and long-term capital gains are applicable for U. S. Holders that are individuals, estates
or trusts. For this purpose, “qualified dividend income” means, inter alia, dividends received from a “qualified foreign
corporation.” A “qualified foreign corporation” is a corporation that is entitled to the benefits of a comprehensive
tax treaty with the United States which includes an exchange of information program. The IRS has stated that the Treaty satisfies this
requirement and we believe we are eligible for the benefits of the Treaty.

In addition, our dividends will be qualified dividend income if our
ordinary shares or ADSs are readily tradable on Nasdaq or another established securities market in the United States. Dividends will not
qualify for the preferential rate if we are treated, in the year the dividend is paid or in the prior year, as a PFIC, as described below
under “ - Passive Foreign Investment Companies.” A U. S. Holder will not be entitled to the preferential rate: (1)
if the U. S. Holder has not held our ordinary shares or ADSs for at least 61 days of the 121 day period beginning on the date which is
60 days before the ex-dividend date, or (2) to the extent the U. S. Holder is under an obligation to make related payments with respect
to positions in substantially similar or related property. Any days during which the U. S. Holder has diminished its risk of loss on our
ordinary shares or ADSs are not counted towards meeting the 61-day holding period.