Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 275

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 275
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 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
in the Company may under certain circumstances (in particular, if the common shares in the Company are redeemed for subsequent cancellation)
be taxed as a partial liquidation for Swiss federal withholding tax purposes, with the consequence that the difference between the repurchase
price and the nominal value of the shares (“ Nennwertprinzip”) plus capital contribution reserves (“