Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 144

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 10
Chunk 144
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, as determined under U. S. federal income tax principles.

Distributions in excess of such earnings and profits will be treated first as a non-taxable return of capital to the extent of the U. S. Holder’s tax basis in our common shares and thereafter as capital gain. Because we are not a U. S. corporation, U. S. Holders that are corporations will generally not be entitled to claim a dividends received deduction with respect to any distributions they receive from us. Dividends paid with respect to our common shares will generally be treated as foreign source dividend income and will generally constitute “passive category income” for purposes of computing allowable foreign tax credits for U. S. foreign tax credit purposes.

Subject to applicable limitations, including a holding period requirement, dividends paid on our common shares to certain non-corporate U. S. Holders will generally be treated as “qualified dividend income” that is taxable to such U. S. Holders at preferential tax rates provided that (1) the common shares are readily tradable on an established securities market in the U. S. (such as the NYSE, on which our common shares are traded); and (2) we are not a passive foreign investment company for the taxable year during which the dividend is paid or the immediately preceding taxable year (which, as discussed below, we do not believe that we are or will be for any future taxable years).

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There is no assurance that any dividends paid on our common shares will be eligible for these preferential rates in the hands of such non-corporate U. S. Holders, although, as described above, we expect such dividends to be so eligible provided an eligible non-corporate U. S. Holder meets all applicable requirements. Any dividends paid by us which are not eligible for these preferential rates will be taxed as ordinary income to a non-corporate U. S. Holder.

Special rules may apply to any “extraordinary dividend” - generally, a dividend in an amount which is equal to or in excess of 10% of a shareholder’s adjusted tax basis in a common share - paid by us. If we pay an “extraordinary dividend” on our common shares that is treated as “qualified dividend income”, then any loss derived by certain non-corporate U. S. Holders from the sale or exchange of such common shares will be treated as long-term capital loss to the extent of such dividend.

Sale, Exchange or Other Disposition of Common Shares

Ass