Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 147

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 147
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, provided the required information is timely furnished to the IRS.

All Non-U. S. holders should consult their tax
advisors regarding the application of information reporting and backup withholding to them.

FATCA Withholding Taxes

Sections 1471 through 1474 of the Code and the
Treasury Regulations and administrative guidance promulgated thereunder (commonly referred to as the “ Foreign Account Tax Compliance
Act” or “ FATCA”) generally impose withholding of 30% on payments of dividends (including constructive dividends) on
our common shares to “foreign financial institutions” (which is broadly defined for this purpose and in general includes investment
vehicles) and certain other non-U. S. entities unless various U. S. information reporting and due diligence requirements (generally relating
to ownership by U. S. persons of interests in or accounts with those entities) have been satisfied by, or an exemption applies to, the
payee (typically certified as to by the delivery of a properly completed IRS Form W-8BEN-E). The IRS has issued proposed regulations (on
which taxpayers may rely until final regulations are issued) that provide that these withholding requirements would generally not apply
to gross proceeds from sales or other dispositions of our common shares. However, there can be no assurance that final Treasury regulations
will provide the same exceptions from FATCA withholding as the proposed Treasury regulations. Foreign financial institutions located in
jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Under
certain circumstances, a Non-U. S. holder might be eligible for refunds or credits of such withholding taxes, and a Non-U. S. holder might
be required to file a U. S. federal income tax return to claim such refunds or credits. Similarly, dividends in respect of our common shares
held by an investor that is a non-financial non-U. S. entity that does not qualify under certain exceptions will generally be subject to
withholding at a rate of 30%, unless such entity either (1) certifies to us or the applicable withholding agent that such entity does
not have any “substantial United States owners” or (2) provides certain information regarding the entity’s “substantial
United States owners,” which will in turn be provided to the U. S. Department of Treasury. Prospective investors should consult their
tax advisors regarding the effects of FATCA on their investment in our common shares.

  Dividends and Pay