Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 70

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 70
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 treated
as a United States person under applicable United States Treasury regulations.

If a partnership (or other
entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of our Class A Ordinary Shares, the
tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership.
Partnerships holding our Class A Ordinary Shares and partners in such partnerships are urged to consult their tax advisors as to the particular
United States federal income tax consequences of an investment in our Class A Ordinary Shares.

Passive Foreign Investment Company Considerations

A non-United States corporation,
such as our company, will be a “passive foreign investment company,” or “ PFIC,” for United States federal income
tax purposes, if, in any particular taxable year, either (i) 75% or more of its gross income for such year consists of certain types of
“passive” income or (ii) 50% or more of the average quarterly value of its assets (as determined on the basis of fair market
value) during such year produce or are held for the production of passive income. For this purpose, cash is categorized as a passive asset
and the company’s unbooked intangibles associated with active business activities may generally be classified as active assets.
Passive income generally includes, among other things, dividends, interest, rents, royalties, and gains from the disposition of passive
assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other
corporation in which we own, directly or indirectly, at least 25% (by value) of the stock.

Based upon our income and
assets and the value of our Class A Ordinary Shares, we do not believe that we were a PFIC for the taxable years ended December 31, 2024
and 2023, and do not anticipate becoming a PFIC in the foreseeable future.

Although we do not believe
that we were a PFIC for the taxable year ended December 31, 2024 and 2023 and do not anticipate becoming a PFIC in the foreseeable future,
the determination of whether we are or will become a PFIC will depend in part upon the value of our goodwill and other unbooked intangibles
(which will depend upon the market value of our Class A Ordinary Shares from time-to-time, which may be volatile). In estimating the value
of our goodwill and other