Company: AXREF
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001654954-25-008549
Chunk: 77

Company: AMARC RESOURCES LTD
Filing Date: 2025-07-28
Form: 20-F
Item: Item 10
Chunk 77
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-by-year basis and applies to all creditable foreign taxes paid (whether directly or through withholding) by a U. S. Holder during a year.

Complex limitations apply to the foreign tax credit, including the general limitation that the credit cannot exceed the proportionate share of a U. S. Holder’s U. S. federal income tax liability that such U. S. Holder’s “foreign source” taxable income bears to such U. S. Holder’s worldwide taxable income. In applying this limitation, a U. S. Holder’s various items of income and deduction must be classified, under complex rules, as either “foreign source” or “ U. S. source.” Generally, dividends paid by a non-U. S. corporation should be treated as foreign source for this purpose, and gains recognized on the sale of securities of a non-U. S. corporation by a U. S. Holder should be treated as U. S. source for this purpose, except as otherwise provided in an applicable income tax treaty, and if an election is properly made under the Code. However, the amount of a distribution with respect to our common shares that is treated as a “dividend” may be lower for U. S. federal income tax purposes than it is for Canadian federal income tax purposes, resulting in a reduced foreign tax credit allowance to a U. S. Holder. In addition, this limitation is calculated separately with respect to specific categories of income. The foreign tax credit rules are complex, and each U. S. Holder should consult its own U. S. tax advisor regarding the foreign tax credit rules.

Special rules apply to the amount of foreign tax credit that a U. S. Holder may claim on a distribution, including a constructive distribution, from a PFIC. Subject to such special rules, non-U. S. taxes paid with respect to any distribution in respect of stock in a PFIC are generally eligible for the foreign tax credit. The rules relating to distributions by a PFIC and their eligibility for the foreign tax credit are complicated, and a U. S. Holder should consult its own tax advisor regarding their application to the U. S. Holder.

Receipt of Foreign Currency

The amount of any distribution or proceeds paid in Canadian dollars to a U. S. Holder in connection with the ownership, sale or other taxable disposition of our common shares, will be included in the gross income of a U. S. Holder as translated into U. S. dollars calculated by reference to the exchange rate prevailing on the date of actual or constructive receipt