Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 184

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 184
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 consider the tax treatment of partnerships or other pass-through entities or persons who hold our securities through
such entities. If a partnership (or other entity classified as a partnership for U. S. federal income tax purposes) is the beneficial owner
of our shares, the U. S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner
and the activities of the partnership. This discussion also assumes that any distribution made (or deemed made) in respect of our shares
and any consideration received (or deemed received) by a holder in connection with the sale or other disposition of such shares will be
in U. S. dollars.

We have not sought, and will
not seek, a ruling from the Internal Revenue Service (or “ IRS”), or an opinion of counsel as to any U. S. federal income tax
consequence described herein. The IRS may disagree with one or more aspects of the discussion herein, and its determination may be upheld
by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or court decisions will not
adversely affect the accuracy of the statements in this discussion.

BECAUSE OF THE COMPLEXITY
OF THE TAX LAWS AND BECAUSE THE TAX CONSEQUENCES TO ANY PARTICULAR HOLDER OF OUR SECURITIES MAY BE AFFECTED BY MATTERS NOT DISCUSSED HEREIN,
EACH HOLDER OF OUR SECURITIES IS URGED TO CONSULT WITH ITS TAX ADVISOR WITH RESPECT TO THE SPECIFIC TAX CONSEQUENCES OF THE OWNERSHIP
AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT OF STATE, LOCAL AND NON-U. S. TAX LAWS, AS WELL AS U. S. FEDERAL
TAX LAWS AND APPLICABLE TAX TREATIES.

Tax Consequences to U. S. Holders of Ordinary
Shares

Taxation of Distributions Paid on Ordinary
Shares

Subject to the passive foreign
investment company (or “ PFIC”) rules discussed below, a U. S. Holder generally will be required to include in gross income
as ordinary income the amount of any cash dividend paid on our Ordinary Shares. A cash distribution on such shares will be treated as
a dividend for U. S. federal income tax purposes to the extent the distribution is paid out of our current or accumulated earnings and
profits (as determined for U. S. federal income tax purposes). Any distributions in excess of such earnings