Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 145

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 10
Chunk 145
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uming we do not constitute a passive foreign investment company for any taxable year, a U. S. Holder generally will recognize taxable gain or loss upon a sale, exchange or other disposition of our common shares in an amount equal to the difference between the amount realized by the U. S. Holder from such sale, exchange or other disposition and the U. S. Holder’s tax basis in such shares. Such gain or loss will be treated as long-term capital gain or loss if the U. S. Holder’s holding period is greater than one year at the time of the sale, exchange or other disposition. Such capital gain or loss will generally be treated as U. S. source income or loss, as applicable, for U. S. foreign tax credit purposes.

Long-term capital gains of certain non-corporate U. S. Holders are currently eligible for reduced rates of taxation. A U. S. Holder’s ability to deduct capital losses is subject to certain limitations.

3.8% Tax on Net Investment Income

A U. S. Holder that is an individual, estate, or, in certain cases, a trust, will generally be subject to a 3.8% tax on the lesser of (1) the U. S. Holder’s net investment income for the taxable year and (2) the excess of the U. S. Holder’s modified adjusted gross income for the taxable year over a certain threshold (which in the case of individuals will be between $125,000 and $250,000). A U. S. Holder’s net investment income will generally include distributions we make on the common stock which are treated as dividends for U. S. federal income tax purposes and capital gains from the sale, exchange or other disposition of the common stock. This tax is in addition to any income taxes due on such investment income.

Passive Foreign Investment Company Status and Significant Tax Consequences

Special U. S. federal income tax rules apply to a U. S. Holder that holds shares in a PFIC for U. S. federal income tax purposes. In general, we will be treated as a PFIC with respect to a U. S. Holder if, for any taxable year in which such holder holds our common shares, either:

  at least 75% of our gross income for such taxable year consists of passive income (e.g., dividends, interest, capital gains and rents derived other than in the active conduct of a rental busine...  

  at least 50% of the average value of our assets