Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 148

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 10
Chunk 148
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 we do not intend to compute (or to provide U. S. Holders with the information necessary to compute)
our earnings and profits under United States federal income tax principles. Accordingly, a U. S. Holder will be unable to establish that
a distribution is not out of earnings and profits and should expect to treat the full amount of each distribution as a “dividend”
for United States federal income tax purposes.

Any
dividends that we pay will generally be treated as income from foreign sources for United States foreign tax credit purposes and will
generally constitute passive category income. Depending on the U. S. Holder’s particular facts and circumstances, a U. S. Holder
may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect of any foreign withholding taxes
imposed (at a rate not exceeding any applicable treaty rate) on dividends received on our Ordinary Shares. A U. S. Holder who does not
elect to claim a foreign tax credit for foreign tax withheld may instead claim a deduction, for United States federal income tax purposes,
in respect of such withholdings, but only for a year in which such U. S. Holder elects to do so for all creditable foreign income taxes.
The rules governing the foreign tax credit are complex. U. S. Holders are advised to consult their tax advisors regarding the availability
of the foreign tax credit under their particular circumstances.

Dividends
paid in non-U. S. currency will be included in the gross income of a U. S. Holder in a U. S. dollar amount calculated by reference to a spot
market exchange rate in effect on the date that the dividends are received by the U. S. Holder, regardless of whether such foreign currency
is in fact converted into U. S. dollars on such date. Such U. S. Holder will have a tax basis for United States federal income tax purposes
in the foreign currency received equal to that U. S. dollar value. If such dividends are converted into U. S. dollars on the date of receipt,
a U. S. Holder generally should not be required to recognize foreign currency gain or loss in respect thereof. If the foreign currency
so received is not converted into U. S. dollars on the date of receipt, such U. S. Holder will have a basis in the foreign currency equal
to its U. S. dollar value on the date of receipt. Any gain or loss on a subsequent conversion or other disposition of the