Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 147

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 147
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 treatment
also applies to any loss realized on the actual sale or disposition of the ordinary shares, to the extent that the amount of such loss
does not exceed the net mark-to-market gains previously included for such ordinary shares. Your basis in the ordinary shares will be adjusted
to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions by
corporations which are not PFICs would apply to distributions by us, except that the lower applicable capital gains rate for qualified
dividend income discussed above under “ - Taxation of Dividends and Other Distributions on our ordinary shares” generally
would not apply.

The mark-to-market election is available only for
“marketable stock”, which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar
quarter (“regularly traded”) on a qualified exchange or other market (as defined in applicable U. S. Treasury regulations),
including Nasdaq. If the ordinary shares are regularly traded on Nasdaq and if you are a holder of ordinary shares, the mark-to-market
election would be available to you were we to be or become a PFIC.

Alternatively, a U. S. Holder of stock in a PFIC may
make a “qualified electing fund” election with respect to such PFIC to elect out of the tax treatment discussed above. A U. S.
Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable
year such holder’s pro rata share of the corporation’s earnings and profits for the taxable year. However, the qualified electing
fund election is available only if such PFIC provides such U. S. Holder with certain information regarding its earnings and profits as
required under applicable U. S. Treasury regulations.

  88  

We do not currently intend to prepare or provide the
information that would enable you to make a qualified electing fund election. If you hold ordinary shares in any taxable year in which
we are a PFIC, you will be required to file U. S. Internal Revenue Service Form 8621 in each such year and provide certain annual information
regarding such ordinary shares, including regarding distributions received on the ordinary shares and any gain realized on the disposition
of the ordinary shares.

If you do not make a timely “mark-to-market”
election (as described above), and if we were a PFIC at any time during