Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 162

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 162
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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
or business, subject to certain adjustments, generally would be subject also to a “branch profits tax.” The branch profits
tax rate is 30% unless reduced by applicable income tax treaty.

Non-U.S. Holders should consult their tax advisors
regarding potentially applicable income tax treaties that may provide for different rules.

U.S. Federal Estate Tax

The estates of non-resident alien individuals
generally are subject to U.S. federal estate tax on property with a U.S. situs. Because we are a U.S. corporation, our Common Stock will
be U.S. situs property and therefore will be included in the taxable estate of a non-resident alien decedent, unless an applicable estate
tax treaty between the United States and the decedent’s country of residence provides otherwise.

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Informational Reporting and Backup Withholding

The Code and the Treasury regulations require
those who make specified payments to report the payments to the IRS. Among the specified payments are dividends and proceeds paid by
brokers to their customers. The required information returns enable the IRS to determine whether the recipient properly included the
payments in income. This reporting regime is reinforced by “backup withholding” rules. These rules require the payors to
withhold tax from payments subject to information reporting if the recipient fails to cooperate with the reporting regime by failing
to provide his taxpayer identification number to the payor, furnishing an incorrect identification number, or failing to report interest
or dividends on his returns. The backup withholding tax rate is currently 24%. The backup withholding rules do not apply to payments
to corporations, whether domestic or foreign, provided they establish such exemption.

Payments to Non-U.S. Holders of dividends on
our Common Stock generally will not be subject to backup withholding, and payments of proceeds made to Non-U.S. Holders by a broker upon
a sale of Common Stock will not be subject to information reporting or backup withholding, in each case so