Company: SVREW
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001013762-25-001028
Chunk: 112

Company: SaverOne 2014 Ltd.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 112
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 from commodities and securities transactions, and gains from assets that produce passive income. Passive income also
includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. However, rents
and royalties received from unrelated parties in connection with the active conduct of a trade or business are not considered passive
income for purposes of the PFIC test. In determining whether we are a PFIC, a pro rata portion of the income and assets of each corporation
in which we own, directly or indirectly, at least a 25% interest (by value) is taken into account.

A
foreign corporation’s PFIC status is an annual determination that is based on tests that are factual in nature, and our PFIC status
for any year will depend on the composition of our income, fair market value of our assets, and our activities for such year. Based on
our non-passive revenue-producing operations for the year ended December 31, 2024, we may have been a PFIC for our 2024 taxable
year and that we may be a PFIC for 2024 and in the future, although there can be no assurance in this regard Even if we determine that
we are not a PFIC after the close of a taxable year, there can be no assurance that the IRS or a court will agree with our conclusion.

Excess
distribution rules

If
we were a PFIC with respect to a U. S. Holder, then unless the holder makes one of the elections described below, a special tax regime
would apply to the U. S. Holder with respect to (a) any “excess distribution” (generally, aggregate distributions in any year
that are greater than 125% of the average annual distribution received by the holder in the shorter of the three preceding years or the
holder’s holding period for the securities) and (b) any gain realized on the sale or other disposition of the securities. Under
this regime, any excess distribution and realized gain will be treated as ordinary income and will be subject to tax as if (a) the excess
distribution or gain had been realized ratably over the U. S. Holder’s holding period, (b) the amount deemed realized in each year
had been subject to tax in each year of that holding period at the highest marginal rate for such year (other than income allocated to
the current period or any taxable period before we became a PFIC, which would be subject to tax at the U