Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 196

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 196
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 would continue to be subject to the PFIC rules with respect
to its indirect interest in any investment held by us that is treated as an equity interest in a PFIC for U.S. federal income tax purposes,
notwithstanding making a mark-to-market election in respect of our Common Shares. U.S. Holders are urged to consult their own tax advisors
concerning the U.S. federal income tax consequences of holding our Common Shares and the availability of any tax elections if we are
considered a PFIC in any taxable year.

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QEF Election

A U.S. Holder may also be able to avoid some of the adverse impacts of the PFIC tax rules outlined above if such U.S. Holder alternatively elected to treat us as a “qualified electing fund” or “QEF”. Under certain circumstances, a U.S. holder may make a “protective” QEF election and file protective information returns with respect to their Common Shares. U.S. Holders are urged to consult their own tax advisors as to the availability and consequences of such an election. Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions by a PFIC or, in certain cases, QEF inclusions.

If a U.S. Holder was eligible for, and timely made, a QEF election, the U.S. Holder would include in income each year for which we are a PFIC (and be subject to current U.S. federal income tax on) the U.S. Holder’s pro rata share of our ordinary earnings, as ordinary income, and net capital gains, as long-term capital gain, for our taxable year that ends with or within the U.S. Holder’s taxable year, regardless of whether such amounts are actually distributed. Any such ordinary income would not be eligible for the favorable rates applicable to qualified dividend income. The U.S. Holder’s adjusted tax basis in our Common Shares would be increased to reflect taxed but undistributed earnings and profits. Distributions of earnings and profits that had been previously taxed would result in a corresponding reduction in the U.S. Holder’s adjusted tax basis in our Common Shares and would not be taxed again. The U.S. Holder would not, however, be entitled to a deduction for its pro rata share of any losses that we incurred with respect to any year. The U.S. Holder would generally recognize capital gain or loss on the sale, exchange or other disposition of our Common Shares. A U.S. Holder would generally make a QEF election