Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 140

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 140
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 because the
Non-U.S. holder was present in the United States for 183 days or more during the year of sale or other disposition of CAAS Cayman ordinary
shares will generally be subject to a flat 30% tax on the gain derived from such sale or other disposition, which may be offset by U.S.
source capital losses (subject to any applicable tax treaty).

The Company does not believe that it has been,
and CAAS Cayman does not believe that it is and does not anticipate becoming, a “United States real property holding corporation”
for U.S. federal income tax purposes.

Foreign Account Tax Compliance Act

Under Sections 1471 through 1474 of the Code (such
Sections commonly referred to as “FATCA”), a 30% United States federal withholding tax may apply to any dividends paid on
CAAS Cayman ordinary shares to a “foreign financial institution” (as specifically defined in the Code), unless such foreign
financial institution (i) enters into an agreement with the Treasury to report, on an annual basis, information with respect to
shares in, and accounts maintained by, the institution held by certain U.S. persons and by certain non-U.S. entities that are wholly
or partially owned by U.S. persons and to withhold on certain payments, or (ii) if required under an intergovernmental agreement
between the United States and an applicable foreign country, reports such information to its local tax authority, which will exchange
such information with the U.S. authorities. Accordingly, the entity through which CAAS Cayman ordinary shares are held will affect the
determination of whether such withholding is required. Similarly, a 30% United States withholding tax may apply to dividends paid on
CAAS Cayman ordinary shares to a “non-financial foreign entity” (as specifically defined in the Code) that does not qualify
under certain exemptions, unless such entity either (i) certifies to CAAS Cayman that such entity does not have any “substantial
U.S. owners” or (ii) provides certain information regarding the entity’s “substantial U.S. owners,” which
CAAS Cayman, or the applicable withholding agent, will in turn provide to the Secretary of the Treasury. If a dividend payment is both
subject to withholding under FATCA and subject to the withholding tax discussed above under “—Distributions,” an applicable
withholding agent may credit the withholding under FATCA against, and therefore reduce, such other withholding tax. CAAS Cay