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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
20-F/A
(Amendment
No. 1)
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the fiscal year ended March 31, 2023
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from to
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission
file number: 001-41386
OKYO
Pharma Limited
(Exact
name of Registrant as specified in its charter and translation of Registrant’s name into English)
Guernsey
(Jurisdiction
of incorporation or organization)
OKYO
Pharma Limited
Martello
Court
Admiral
Park
St.
Peter Port
Guernsey
GY1 3HB
(Address
of principal executive offices)
OKYO
Pharma Limited
Chief
Financial Officer
107
Cheapside
London
EC2V 6DN
United
Kingdom
+44
20 7495 2379
(Name,
Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Copies
to:
Ed
Lukins
Orrick,
Herrington & Sutcliffe (UK) LLP
107
Cheapside
London
EC2V 6DN
United
Kingdom
Securities
registered or to be registered pursuant to Section 12(b) of the Act:
Title
of each class
Name
of each exchange on which registered
Ordinary
shares, no nominal value
NASDAQ
Capital Market
Securities
registered or to be registered pursuant to Section 12(g) of the Act: None
Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Number
of outstanding shares of each of the issuer’s classes of capital or common stock as of July 27, 2023: 25,553,274 ordinary shares.
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
☐
Yes ☒ No
If
this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section
13 or 15 (d) of the Securities Exchange Act of 1934.
☒
Yes ☐ No
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
☒
Yes ☐ No
Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files).
☒
Yes ☐ No
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, smaller reporting
company, or an emerging growth company. See definitions of “large accelerated filer, “accelerated filer”, “smaller
reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large
accelerated filer ☐
Accelerated
filer ☐
Non-accelerated
filer ☐
Smaller
reporting company ☐
Emerging
growth company ☒
If
an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by checkmark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided
pursuant to Section 13(a) of the Exchange Act.
†
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards
Board to its Accounting Standards Codification after April 5, 2012.
Indicate
by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S.
GAAP ☐
International Financial Reporting Standards as issued by the
International
Accounting Standards Board ☒
Other
☐
If
“Other” has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow:
☐
Item 17 ☐ Item 18
If
this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).
☐
Yes ☒ No
Auditor
Firm ID
Auditor
Name
Auditor
Location
2814
PKF
Littlejohn LLP
London,
England
EXPLANATORY
NOTE
This
Amendment No. 1 on Form 20-F/A (the “Amended Annual Report”) amends the Annual Report on Form 20-F of OKYO Pharma Limited
(the “Company” or “we”) for the year ended March 31, 2023 (the “Original Form 20-F”), filed on August
15, 2023, with the Securities and Exchange Commission (the “SEC”). The only changes made to the Original Form 20-F are (i)
to amend the front cover page of the Form 20-F, (ii) to amend a risk factor in Item 2, (iii) to amend Item 10 E Additional Information-
Taxation- Material U.S. Federal Income Tax Considerations for U.S. Holders- U.S. Federal Income Tax Considerations for U.S. Holders-
Passive Foreign Investment Company (PFIC) Rules section and (iii) revise the Exhibit Table.
Except
as noted above, the Company has not modified, or updated disclosures presented in this Amended Annual Report. Accordingly, the Amended
Annual Report does not reflect events occurring after the Original Form 20-F or modify or update those disclosures affected by subsequent
events.
TABLE
OF CONTENTS
D.
Risk Factors
If
we are a passive foreign investment company (‘PFIC’), there could be adverse U.S. federal income tax consequences to U.S.
holders.
Under
the Internal Revenue Code of 1986, or the Internal Revenue Code, we will be a PFIC for any taxable year in which (1) 75% or more of our
gross income consists of passive income or (2) 50% or more of the average quarterly value of our assets consists of assets that produce,
or are held for the production of, passive income. For purposes of these tests, passive income includes dividends, interest, gains from
the sale or exchange of investment property and certain rents and royalties. In addition, for purposes of the above calculations, a non-U.S.
corporation that directly or indirectly owns at least 25% by value of the shares of another corporation is treated as if it held its
proportionate share of the assets and received directly its proportionate share of the income of such other corporation. If we are a
PFIC for any taxable year during which a U.S. Holder (as defined below under “Certain U.S. and Guernsey Tax Considerations-Material
U.S. Federal Income Tax Considerations for U.S. Holders”) holds our shares, the U.S. Holder may be subject to adverse tax consequences
regardless of whether we continue to qualify as a PFIC, including ineligibility for any preferred tax rates on capital gains or on actual
or deemed dividends, interest charges on certain taxes treated as deferred, and additional reporting requirements.
We
do not believe that we were a PFIC for our taxable year ended March 31, 2023 but cannot provide any assurances regarding our PFIC status
for any past, current or future taxable years. The determination of whether we are a PFIC is a fact-intensive determination made on an
annual basis applying principles and methodologies which in some circumstances are unclear and subject to varying interpretation. In
particular, the characterization of our assets as active or passive may depend in part on our current and intended future business plans,
which are subject to change. In addition, for our current and future taxable years, the total value of our assets for PFIC testing purposes
may be determined in part by reference to the market price of our ordinary shares from time to time, which may fluctuate considerably.
Under the income test, our status as a PFIC depends on the composition of our income which will depend on the transactions we enter into
in the future and our corporate structure. The composition of our income and assets is also affected by how, and how quickly, we spend
the cash we raise in any offering.
In
certain circumstances, a U.S. Holder of shares in a PFIC may alleviate some of the adverse tax consequences described above by making,
where available, a qualified electing fund, or QEF, election to include in income its pro rata share of the corporation’s income
on a current basis or a mark-to-market election. A U.S. Holder may make a QEF election with respect to our ordinary shares only if we
agree to furnish such U.S. Holder annually with a PFIC annual information statement as specified in the applicable U.S. Treasury Regulations.
For
further discussion of the PFIC rules and the adverse U.S. federal income tax consequences in the event we are classified as a PFIC, see
the section of this report entitled “Certain U.S. and Guernsey Tax Considerations-Material U.S. Federal Income Considerations for
U.S. Holders.”
Item 10.
Additional Information
E.
Taxation
Material
U.S. Federal Income Tax Considerations for U.S. Holders
U.S.
Federal Income Tax Considerations for U.S. Holders
The
following discussion describes the material U.S. federal income tax consequences relating to the ownership and disposition of our Ordinary
shares by U.S. Holders. This discussion applies to U.S. Holders that purchase our Ordinary shares pursuant to this offering and hold
such Ordinary shares as capital assets for tax purposes. This discussion is based on the Internal Revenue Code, U.S. Treasury regulations
promulgated thereunder and administrative and judicial interpretations thereof, and the income tax treaty between the United Kingdom
and the United States, or the Treaty, all as in effect on the date hereof and all of which are subject to change, possibly with retroactive
effect. This discussion does not address all of the U.S. federal income tax consequences that may be relevant to specific U.S. Holders
in light of their particular circumstances or to U.S. Holders subject to special treatment under U.S. federal income tax law (such as
certain financial institutions, insurance companies, dealers or traders in securities or other persons that generally mark their securities
to market for U.S. federal income tax purposes, tax-exempt entities or governmental organizations, retirement plans, regulated investment
companies, real estate investment trusts, grantor trusts, brokers, dealers or traders in securities, commodities, currencies or notional
principal contracts, certain former citizens or long-term residents of the United States, persons who hold our Ordinary shares as part
of a “straddle,” “hedge,” “conversion transaction,” “synthetic security” or integrated
investment, persons that have a “functional currency” other than the U.S. dollar, persons who are subject to the tax accounting
rules of Section 451(b) of the Internal Revenue Code, persons that own directly, indirectly or through attribution 10% or more (by vote
or value) of our equity, corporations that accumulate earnings to avoid U.S. federal income tax, partnerships and other pass-through
entities, and investors in such pass-through entities). This discussion does not address any U.S. state or local or non-U.S. tax consequences
or any U.S. federal estate, gift or alternative minimum tax consequences.
As
used in this discussion, the term “U.S. Holder” means a beneficial owner of our Ordinary shares that is, for U.S. federal
income tax purposes, (1) an individual who is a citizen or resident of the United States, (2) a corporation (or entity treated as a corporation
for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof, or the District
of Columbia, (3) an estate the income of which is subject to U.S. federal income tax regardless of its source or (4) a trust (i) with
respect to which a court within the United States is able to exercise primary supervision over its administration and one or more United
States persons have the authority to control all of its substantial decisions or (ii) that has elected under applicable U.S. Treasury
regulations to be treated as a domestic trust for U.S. federal income tax purposes.
If
an entity treated as a partnership for U.S. federal income tax purposes holds our Ordinary shares, the U.S. federal income tax consequences
relating to an investment in such Ordinary shares will depend upon the status and activities of such entity and the particular partner.
Any such entity and a partner in any such entity should consult its own tax advisor regarding the U.S. federal income tax consequences
applicable to it (and, as applicable, its partners) of the purchase, ownership and disposition of our Ordinary shares.
We
have not sought, nor will we seek, a ruling from the IRS with respect to the matters discussed below. There can be no assurance that
the IRS will not take a different position concerning the tax consequences of the purchase, ownership or disposition of the Ordinary
shares or that any such position would not be sustained. Persons considering an investment in our Ordinary shares should consult their
own tax advisors as to the particular tax consequences applicable to them relating to the purchase, ownership and disposition of our
Ordinary shares, including the applicability of U.S. federal, state and local tax laws and non-U.S. tax laws.
Passive
Foreign Investment Company (PFIC) Rules
In
general, a corporation organized outside the United States will be treated as a PFIC for any taxable year in which either (1) at least
75% of its gross income is “passive income,” or the PFIC income test, or (2) on average at least 50% of its assets, determined
on a quarterly basis, are assets that produce passive income or are held for the production of passive income, or the PFIC asset test.
Passive income for this purpose generally includes, among other things, dividends, interest, royalties, rents, and gains from the sale
or exchange of property that give rise to passive income. Assets that produce or are held for the production of passive income generally
include cash, even if held as working capital or raised in a public offering, marketable securities, and other assets that may produce
passive income. Generally, in determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of
each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.
Although
PFIC status is determined on an annual basis and generally cannot be determined until the end of the taxable year, based on the nature
of our current and expected income and the current and expected value and composition of our assets, we believe we were not a PFIC for
our March 31, 2023 taxable year and we do not expect to be a PFIC for our current taxable year. There can be no assurance that we will
not be a PFIC in future taxable years. Even if we determine that we are not a PFIC for a taxable year, there can be no assurance that
the IRS will agree with our conclusion and that the IRS would not successfully challenge our position. Because of the uncertainties involved
in establishing our PFIC status, our U.S. counsel expresses no opinion regarding our PFIC status, and also expresses no opinion with
respect to our predictions or past determinations regarding our PFIC status.
If
we are a PFIC in any taxable year during which a U.S. Holder owns our ordinary shares, the U.S. Holder could be liable for additional
taxes and interest charges under the “PFIC excess distribution regime” upon (1) a distribution paid during a taxable year
that is greater than 125% of the average annual distributions paid in the three preceding taxable years, or, if shorter, the U.S. Holder’s
holding period for our ordinary shares, and (2) any gain recognized on a sale, exchange or other disposition, including, under certain
circumstances, a pledge, of our ordinary shares, whether or not we continue to be a PFIC. Under the PFIC excess distribution regime,
the tax on such distribution or gain would be determined by allocating the distribution or gain ratably over the U.S. Holder’s
holding period for our ordinary shares. The amount allocated to the current taxable year (i.e., the year in which the distribution
occurs or the gain is recognized) and any year prior to the first taxable year in which we are a PFIC will be taxed as ordinary income
earned in the current taxable year. The amount allocated to other taxable years will be taxed at the highest marginal rates in effect
for individuals or corporations, as applicable, to ordinary income for each such taxable year, and an interest charge, generally applicable
to underpayments of tax, will be added to the tax.
If
we are a PFIC for any year during which a U.S. Holder holds our ordinary shares, we must generally continue to be treated as a PFIC by
that U.S. Holder for all succeeding years during which the U.S. Holder holds such ordinary shares, unless we cease to meet the requirements
for PFIC status and the U.S. Holder makes a “deemed sale” election with respect to our ordinary shares. If the election is
made, the U.S. Holder will be deemed to sell our ordinary shares it holds at their fair market value on the last day of the last taxable
year in which we qualified as a PFIC, and any gain recognized from such deemed sale would be taxed under the PFIC excess distribution
regime. After the deemed sale election, the U.S. Holder’s ordinary shares would not be treated as shares of a PFIC unless we subsequently
become a PFIC.
If
we are a PFIC for any taxable year during which a U.S. Holder holds our ordinary shares and one of our non-United States subsidiaries
is also a PFIC (i.e., a lower-tier PFIC), such U.S. Holder would be treated as owning a proportionate amount (by value) of the
shares of the lower-tier PFIC and would be taxed under the PFIC excess distribution regime on distributions by the lower-tier PFIC and
on gain from the disposition of shares of the lower-tier PFIC even though such U.S. Holder would not receive the proceeds of those distributions
or dispositions. Any of our non-United States subsidiaries that have elected to be disregarded as entities separate from us or as partnerships
for U.S. federal income tax purposes would not be corporations under U.S. federal income tax law and accordingly, cannot be classified
as lower-tier PFICs. However, a non-United States subsidiary that has not made the election may be classified as a lower-tier PFIC if
we are a PFIC during your holding period and the subsidiary meets the PFIC income test or PFIC asset test.
If
we are a PFIC, a U.S. Holder will not be subject to tax under the PFIC excess distribution regime on distributions or gain recognized
on our ordinary shares if a valid “mark-to-market” election is made by the U.S. Holder for our ordinary shares. An electing
U.S. Holder generally would take into account as ordinary income each year, the excess of the fair market value of our ordinary shares
held at the end of such taxable year over the adjusted tax basis of such ordinary shares. The U.S. Holder would also take into account,
as an ordinary loss each year, the excess of the adjusted tax basis of such ordinary shares over their fair market value at the end of
the taxable year, but only to the extent of the excess of amounts previously included in income over ordinary losses deducted as a result
of the mark-to-market election. The U.S. Holder’s tax basis in our ordinary shares would be adjusted annually to reflect any income
or loss recognized as a result of the mark-to-market election. Any gain from a sale, exchange or other disposition of our ordinary shares
in any taxable year in which we are a PFIC would be treated as ordinary income and any loss from such sale, exchange or other disposition
would be treated first as ordinary loss (to the extent of any net mark-to-market gains previously included in income) and thereafter
as capital loss. If, after having been a PFIC for a taxable year, we cease to be classified as a PFIC because we no longer meet the PFIC
income or PFIC asset test, the U.S. Holder would not be required to take into account any latent gain or loss in the manner described
above and any gain or loss recognized on the sale or exchange of the ordinary shares would be classified as a capital gain or loss.
A
mark-to-market election is available to a U.S. Holder only for “marketable stock.” Generally, stock will be considered marketable
stock if it is “regularly traded” on a “qualified exchange” within the meaning of applicable U.S. Treasury regulations.
A class of stock is regularly traded during any calendar year during which such class of stock is traded, other than in de minimis quantities,
on at least 15 days during each calendar quarter.
The
tax consequences that would apply if we are a PFIC would also be different from those described above if a U.S. Holder were able to make
a valid Qualified Electing Fund (QEF) election. As we do not expect to provide U.S. Holders with the information necessary for a U.S.
Holder to make a QEF election, prospective investors should assume that a QEF election will not be available.
The
U.S. federal income tax rules relating to PFICs are very complex. Prospective U.S. investors are strongly urged to consult their own
tax advisors with respect to the impact of PFIC status on the purchase, ownership and disposition of our ordinary shares, the consequences
to them of an investment in a PFIC, any elections available with respect to the ordinary shares and the IRS information reporting obligations
with respect to the purchase, ownership and disposition of ordinary shares of a PFIC.
Distributions
Subject
to the discussion above under “Passive Foreign Investment Company Rules”, a U.S. Holder that receives a distribution with
respect to our 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 by the U.S. Holder 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 a 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. The amount of a dividend will include any amounts withheld
by the company in respect of United Kingdom taxes.
Distributions
on our 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 applicable limitations, some of which vary depending
upon the U.S. Holder’s particular circumstances, any United Kingdom income taxes withheld from dividends on ordinary shares at
a rate not exceeding the rate provided by the Treaty will be creditable against the U.S. Holder’s U.S. federal income tax liability.
The rules governing foreign tax credits are complex and U.S. Holders should consult their tax advisers regarding the creditability of
foreign taxes in their particular circumstances. In lieu of claiming a foreign tax credit, U.S. Holders may, at their election, deduct
foreign taxes, including any United Kingdom income tax, in computing their taxable income, subject to generally applicable limitations
under U.S. law. An election to deduct foreign taxes instead of claiming foreign tax credits applies to all foreign taxes paid or accrued
in the taxable year. The amount of any dividend income paid in a currency other than the U.S. dollar will be the U.S. dollar amount calculated
by reference to the exchange rate in effect on the date of actual or constructive receipt, regardless of whether the payment is in fact
converted into U.S. dollars at that time. If the dividend is converted into U.S. dollars on the date of receipt, a U.S. holder should
not be required to recognize foreign currency gain or loss in respect of the dividend amount. A U.S. Holder may have foreign currency
gain or loss if the dividend is converted into U.S. dollars after the date of receipt.
Distributions
paid on our ordinary shares will not be eligible for the “dividends received” deduction generally allowed to corporate shareholders
with respect to dividends received from U.S. corporations under the Internal Revenue Code. Dividends paid by a “qualified foreign
corporation’’ to non-corporate U.S. Holders are eligible for taxation at a reduced capital gains rate rather than the marginal
tax rates generally applicable to ordinary income provided that a holding period requirement (more than 60 days of ownership, without
protection from the risk of loss, during the 121-day period beginning 60 days before the ex-dividend date) and certain other requirements
are met. Each U.S. Holder is advised to consult their tax advisors regarding the availability of the reduced tax rate on dividends to
their particular circumstances. However, if we are a PFIC for the taxable year in which the dividend is paid or the preceding taxable
year (see discussion above under “Passive Foreign Investment Company Rules’’), we will not be treated as a qualified
foreign corporation, and therefore the reduced capital gains tax rate described above will not apply.
A
non-United States corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid
or the preceding taxable year) generally will be considered to be a qualified foreign corporation with respect to any dividend it pays
on ordinary shares that are readily tradable on an established securities market in the United States.
The
amount of any dividend income that is paid in Pounds Sterling will be the U.S. dollar amount calculated by reference to the exchange
rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars. If the dividend is converted
into U.S. dollars on the date of receipt (actual or constructive), a U.S. Holder should not be required to recognize foreign currency
gain or loss in respect of the dividend income. A U.S. Holder may have foreign currency gains or losses if the dividend is converted
into U.S. dollars after the date of receipt (actual or constructive).
Sale,
Exchange or Other Taxable Disposition of Our Ordinary Shares
Subject
to the discussion above under “Passive Foreign Investment Company Rules”, a U.S. Holder generally will recognize capital
gain or loss for U.S. federal income tax purposes upon the sale, exchange or other disposition of our ordinary shares in an amount equal
to the difference, if any, between the amount realized (i.e., the amount of cash plus the fair market value of any property received)
on the sale, exchange or other disposition and such U.S. Holder’s adjusted tax basis in the ordinary shares. Such capital gain
or loss generally will be a long-term capital gain taxable at a reduced rate for non-corporate U.S. Holders or a long-term capital loss
if, on the date of sale, exchange or other disposition, the ordinary shares were held by the U.S. Holder for more than one year. Any
capital gain of a non-corporate U.S. Holder that is not a long-term capital gain is taxed at ordinary income tax rates. The deductibility
of capital losses is subject to limitations. Any gain or loss recognized from the sale or other disposition of our ordinary shares will
generally be a gain or loss from sources within the United States for U.S. foreign tax credit purposes.
Medicare
Tax
Certain
U.S. Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally are subject to a 3.8% tax
on all or a portion of their net investment income, which may include their gross dividend income and net gains from the disposition
of our ordinary shares. If you are a U.S. Holder that is an individual, estate or trust, you are encouraged to consult your tax advisors
regarding the applicability of this Medicare tax to your income and gains in respect of your investment in our ordinary shares.
Information
Reporting and Backup Withholding
U.S.
Holders may be required to file certain U.S. information reporting returns with the IRS with respect to an investment in our ordinary
shares, including, among others, IRS Form 8938 (Statement of Specified Foreign Financial Assets). In addition, each U.S. Holder who is
a shareholder of a PFIC must file an annual report containing certain information. U.S. Holders paying more than $100,000 for our ordinary
shares may be required to file IRS Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) reporting this payment.
Substantial penalties and other adverse circumstances may be imposed upon a U.S. Holder that fails to comply with the required information
reporting.
Dividends
on and proceeds from the sale or other disposition of our ordinary shares generally have to be reported to the IRS unless the U.S. Holder
establishes a basis for exemption. Backup withholding may apply to amounts subject to reporting if the holder (1) fails to provide an
accurate U.S. taxpayer identification number or otherwise establish a basis for exemption, or (2) is described in certain other categories
of persons. However, U.S. Holders that are corporations generally are excluded from these information reporting and backup withholding
tax rules.
Backup
withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or
a credit against a U.S. Holder’s U.S. federal income tax liability if the required information is furnished by the U.S. Holder
on a timely basis to the IRS.
U.S.
Holders should consult their own tax advisors regarding the backup withholding tax and information reporting rules.
EACH
PROSPECTIVE INVESTOR IS URGED TO CONSULT THEIR OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO THEM OF AN INVESTMENT IN OUR ORDINARY SHARES
IN LIGHT OF THE INVESTOR’S OWN CIRCUMSTANCES. IN ADDITION, SIGNIFICANT CHANGES IN U.S. FEDERAL INCOME TAX LAWS WERE RECENTLY ENACTED.
PROSPECTIVE INVESTORS SHOULD ALSO CONSULT WITH THEIR TAX ADVISORS WITH RESPECT TO SUCH CHANGES IN U.S. TAX LAW AS WELL AS POTENTIAL CONFORMING
CHANGES IN STATE TAX LAWS.
U.K.
Taxation
The
following is intended as a general guide to current U.K. tax law and Her Majesty’s Revenue & Customs, or HMRC, published practice
applying as at the date of this annual report (both of which are subject to change at any time, possibly with retrospective effect) relating
to the holding of ordinary shares. It does not constitute legal or tax advice and does not purport to be a complete analysis of all U.K.
tax considerations relating to the holding of ordinary shares, or all of the circumstances in which holders of ordinary shares may benefit
from an exemption or relief from U.K. taxation. It is written on the basis that the company does not (and will not) directly or indirectly
derive 75% or more of its qualifying asset value from U.K. land, and that the company is and remains solely resident in the U.K. for
tax purposes and will therefore be subject to the U.K. tax regime and not the U.S. tax regime save as set out above under “U.S.
Federal Income Taxation.”
Except
to the extent that the position of non-U.K. resident persons is expressly referred to, this guide relates only to persons who are resident
(and, in the case of individuals, domiciled or deemed domiciled) for tax purposes solely in the U.K. and do not have a permanent establishment
or fixed base in any other jurisdiction with which the holding of the ordinary shares is connected, or U.K. Holders, who are absolute
beneficial owners of the ordinary shares (where the ordinary shares are not held through an Individual Savings Account or a Self-Invested
Personal Pension) and who hold the ordinary shares as investments.
This
guide may not relate to certain classes of U.K. Holders, such as (but not limited to):
●
persons
who are connected with the company;
●
financial
institutions;
●
insurance
companies;
●
charities
or tax-exempt organizations;
●
collective
investment schemes;
●
pension
schemes;
●
market
makers, intermediaries, brokers or dealers in securities;
●
persons
who have (or are deemed to have) acquired their ordinary shares by virtue of an office or employment or who are or have been officers
or employees of the company or any of its affiliates; and
●
individuals
who are subject to U.K. taxation on a remittance basis.
THESE
PARAGRAPHS ARE A SUMMARY OF CERTAIN U.K. TAX CONSIDERATIONS AND ARE INTENDED AS A GENERAL GUIDE ONLY. IT IS RECOMMENDED THAT ALL HOLDERS
OF ORDINARY SHARES OBTAIN ADVICE AS TO THE CONSEQUENCES OF THE ACQUISITION, OWNERSHIP AND DISPOSAL OF THE ORDINARY SHARES IN THEIR OWN
SPECIFIC CIRCUMSTANCES FROM THEIR OWN TAX ADVISORS. IN PARTICULAR, NON-U.K. RESIDENT OR DOMICILED PERSONS ARE ADVISED TO CONSIDER THE
POTENTIAL IMPACT OF ANY RELEVANT DOUBLE TAXATION AGREEMENTS.
Dividends
Withholding
Tax
Dividends
paid by the company will not be subject to any withholding or deduction for or on account of U.K. tax, irrespective of the residence
or particular circumstances of the holders of ordinary shares.
Income
Tax
An
individual U.K. Holder may, depending on his or her particular circumstances, be subject to U.K. tax on dividends received from the company.
An individual holder of ordinary shares who is not resident for tax purposes in the United Kingdom should not be chargeable to U.K. income
tax on dividends received from the company unless he or she carries on (whether solely or in partnership) a trade, profession or vocation
in the U.K. through a branch or agency to which the ordinary shares are attributable. There are certain exceptions for trading in the
U.K. through independent agents, such as some brokers and investment managers.
All
dividends received by an individual U.K. Holder from us or from other sources will form part of that U.K. Holder’s total income
for income tax purposes and will constitute the top slice of that income. A nil rate of income tax will apply to the first £2,000
of taxable dividend income received by the individual U.K. Holder in a tax year. Income within the nil-rate band will be taken into account
in determining whether income in excess of the £2,000 tax-free allowance falls within the basic rate, higher rate or additional
rate tax bands. Dividend income in excess of the tax-free allowance will (subject to the availability of any income tax personal allowance)
be taxed at 7.5 per cent. to the extent that the excess amount falls within the basic rate tax band, 32.5 per cent. to the extent that
the excess amount falls within the higher rate tax band and 38.1 per cent. to the extent that the excess amount falls within the additional
rate tax band.
Corporation
Tax
A
corporate holder of ordinary shares who is not resident for tax purposes in the United Kingdom should not be chargeable to U.K. corporation
tax on dividends received from the company unless it carries on (whether solely or in partnership) a trade in the United Kingdom through
a permanent establishment to which the ordinary shares are attributable.
Corporate
U.K. Holders should not be subject to U.K. corporation tax on any dividend received from the company so long as the dividends qualify
for exemption, which should be the case, provided the dividends fall within an exempt class and certain conditions are met. If the conditions
for the exemption are not satisfied, or such U.K. Holder elects for an otherwise exempt dividend to be taxable, U.K. corporation tax
will be chargeable on the amount of any dividends (at the current rate of 19%).
Chargeable
Gains
A
disposal or deemed disposal of ordinary shares by a U.K. Holder may, depending on the U.K. Holder’s circumstances and subject to
any available exemptions or reliefs (such as the annual exemption), give rise to a chargeable gain or an allowable loss for the purposes
of U.K. capital gains tax and corporation tax on chargeable gains.
If
an individual U.K. Holder who is subject to U.K. income tax at either the higher or the additional rate is liable to U.K. capital gains
tax on the disposal of ordinary shares, the current applicable rate will be 20%. For an individual U.K. Holder who is subject to U.K.
income tax at the basic rate and liable to capital gains tax on such disposal, the current applicable rate would be 10%, save to the
extent that any capital gains when aggregated with the U.K. Holder’s other taxable income and gains in the relevant tax year exceed
the unused basic rate tax band. In that case, the rate currently applicable to the excess would be 20%.
If
a corporate U.K. Holder becomes liable to U.K. corporation tax on the disposal (or deemed disposal) of ordinary shares, the main rate
of U.K. corporation tax (currently 19%) would apply. Indexation allowance is not available in respect of disposals of ordinary shares
acquired on or after January 1, 2018 (and only covers the movement in the retail prices index up until 31 March 2017, in respect of assets
acquired prior to that date). A holder of ordinary shares which is not resident for tax purposes in the United Kingdom should not normally
be liable to U.K. capital gains tax or corporation tax on chargeable gains on a disposal (or deemed disposal) of ordinary shares unless
the person is carrying on (whether solely or in partnership) a trade, profession or vocation in the United Kingdom through a branch or
agency (or, in the case of a corporate holder of ordinary shares, through a permanent establishment) to which the ordinary shares are
attributable. However, an individual holder of ordinary shares who is treated as resident outside the United Kingdom for the purposes
of a double tax treaty, or who has ceased to be resident for tax purposes in the United Kingdom for a period of less than five years
and who disposes of ordinary shares during that period may be liable on his or her return to the United Kingdom to U.K. tax on any capital
gain realized (subject to any available exemption or relief).
Stamp
Duty and Stamp Duty Reserve Tax
The
discussion below relates to the holders of our ordinary shares or ordinary shares wherever resident, however it should be noted that
special rules may apply to certain persons such as market makers, brokers, dealers or intermediaries.
Issue
of Shares
No
U.K. stamp duty or stamp duty reserve tax, or SDRT, is payable on the issue of the ordinary shares in the company.
Transfers
of Shares
Transfers
of the ordinary shares (including instruments transferring ordinary shares and agreements to transfer ordinary shares) are not subject
to UK stamp duty or UK SDRT.
Issue
and Transfers of Ordinary Shares
U.K.
stamp duty or SDRT is not payable on the issue or transfer of (including an agreement to transfer) ordinary shares in a Guernsey incorporated
entity. Guernsey has no issue or transfer taxes on ordinary shares.
Exhibit
No.
Description
3.1
Memorandum and Articles of Incorporation of OKYO Pharma Limited (incorporated by reference to Exhibit 3.1 filed with Form F-1 on March 25, 2022)
8.1
List of Subsidiaries. (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.1
OKYO Pharma Limited Share Option Plan With Non-Employee Sub-Plan And US Sub-Plan (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.2
Executive Employment Agreement dated December 21, 2020 between Gary S. Jacob and OKYO Pharma Limited as amended on January 19, 2021. (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.3
Collaboration Agreement between On Target Therapeutics, LLC and OKYO Pharma Limited dated June 4, 2018 (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.4
Amendment to Collaboration Agreement between On Target Therapeutics, LLC and OKYO Pharma Limited dated October 22, 2018 (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.5
License Agreement dated as of May 1, 2018 by and between Tufts Medical Center, Inc. and OKYO Pharma Limited (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.6
Shared Services Agreement dated as of January 1, 2018 by and between OKYO Pharma Limited and Tiziana Life Sciences plc (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.7
License and Sublicense Agreement dated May 22, 2017 by and between On Target Therapeutics, LLC and OKYO Pharma Limited (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.8
First Amendment to the License and Sublicense Agreement dated March 25, 2021 by and between On Target Therapeutics, LLC and OKYO Pharma Limited. (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
10.9
Collaboration Agreement dated August 6, 2019 between Tufts Medical Center, Inc. and OKYO Pharma Limited. (Incorporated by reference to Exhibit 4.1 to Amendment No. 6 to Form F-1 filed on May 13, 2022).
12.1*
Certification by the Principal Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
12.2*
Certification by the Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
13.1**
Certification by the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
13.2**
Certification by the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
15.1**
Consent of Mazars LLP.
101.INS
XBRL
Instance Document.
101.SCH
XBRL
Taxonomy Extension Schema Document.
101.CAL
XBRL
Taxonomy Extension Calculation Linkbase Document.
101.DEF
XBRL
Taxonomy Extension Definition Linkbase Document.
101.LAB
XBRL
Taxonomy Extension Label Linkbase Document.
101.PRE
XBRL
Taxonomy Extension Presentation Linkbase Document
*
Filed
herewith
**
Previously
filed
SIGNATURES
The
Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has duly caused and authorized
the undersigned to sign this annual report on its behalf.
OKYO
Pharma Ltd
By:
/s/
Gary Jacob
Gary
Jacob
Chief
Executive Officer
Date:
August
25, 2023
ATTACHMENTS / EXHIBITS
ex12-1.htm
ex12-2.htm
XBRL SCHEMA FILE
XBRL DEFINITION FILE
XBRL LABEL FILE
XBRL PRESENTATION FILE
IDEA: R1.htm
IDEA: form20fa_htm.xml
IDEA: Financial_Report.xlsx
IDEA: FilingSummary.xml
IDEA: MetaLinks.json
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