Company: ALAR
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001213900-25-025287
Chunk: 128

Company: Alarum Technologies Ltd.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 10
Chunk 128
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 anticipate declaring
or paying dividends to holders of our ordinary stock in the foreseeable future. However, if we make a distribution contrary to the expectation,
subject to the discussion above under “ - Passive Foreign Investment Company Consequences,” a U. S. Holder that
receives a distribution with respect to Ordinary Shares generally will be required to include the gross amount of such distribution in
gross income as a dividend when actually or constructively received to the extent of the U. S. Holder’s pro rata share of our current
and/or accumulated earnings and profits (as determined under U. S. federal income tax principles). To the extent a distribution received
by a U. S. Holder is not a dividend because it exceeds the U. S. Holder’s pro rata share of our current and accumulated earnings and
profits, it will be treated first as a tax-free return of capital and reduce (but not below zero) the adjusted tax basis of the U. S. Holder’s
Ordinary Shares. To the extent the distribution exceeds the adjusted tax basis of the U. S. Holder’s Ordinary Shares, the remainder
will be taxed as capital gain. Because we may not account for our earnings and profits in accordance with U. S. federal income tax principles,
U. S. Holders should expect all distributions to be reported to them as dividends.

Distributions on Ordinary
Shares that are treated as dividends generally will constitute income from sources outside the United States for foreign tax credit purposes
and generally will constitute passive category income. Subject to certain complex conditions and limitations, Israeli taxes withheld on
any distributions on Ordinary Shares may be eligible for credit against a U. S. Holder’s federal income tax liability. The rules
relating to the determination of the U. S. foreign tax credit are complex, and U. S. Holders should consult their tax advisors regarding
the availability of a foreign tax credit in their particular circumstances and the possibility of claiming an itemized deduction (in lieu
of the foreign tax credit) for any foreign taxes paid or withheld.

Dividends paid by a “qualified
foreign corporation” are eligible for taxation to non-corporate U. S. holders at a reduced capital gains rate rather than the marginal
tax rates generally applicable to ordinary income provided that certain requirements are met. Each U. S. Holder is advised to consult its
tax advisors regarding the availability of the reduced tax rate on dividends with regard to its particular circumstances. Each U. S. Holder
is advised to consult its tax