Capital Reduction ATO Class Ruling

• ATO confirms cash distributions as return of capital, not dividend
• Approximately $5.5 million distributed to shareholders
• Tax withheld amounts will be paid to shareholders within 14 days

Senetas Corporation Limited (ASX: SEN) announced that the Australian Taxation Office (ATO) has confirmed that the cash distributions totaling approximately $5.5 million will be treated as a return of capital rather than a dividend. The distributions include $0.00120772 per share and $0.2111 per share, which were approved and paid in November 2025 and August 2026, respectively. For Australian-resident shareholders, these distributions will not give rise to dividends for income tax purposes. The withheld tax amounts will be paid to shareholders within the next 14 days. This ruling affects the tax treatment of these payments for Australian-resident shareholders, potentially impacting their cost base and capital gains calculations.