Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 50

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 3
Chunk 50
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 year, which could result in adverse U. S. federal income tax consequences to U. S. investors
in our ordinary shares.

In general, a non-U. S. corporation is a passive
foreign investment company, or PFIC, for any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii)
50% or more of the average quarterly value of its assets consists of assets that produce, or are held for the production of, passive income.
For purposes of the above calculations, a non-U. S. corporation that owns at least 25% by value of the shares of another corporation is
treated as if it held its proportionate share of the assets of the other corporation and received directly its proportionate share of
the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties, and certain gains. Cash
is a passive asset for these purposes.

Based on the expected composition of our income
and assets and the value of our assets, including goodwill, we do not expect to be a PFIC for our current taxable year. However, the proper
application of the PFIC rules to a company with a business such as ours is not entirely clear. Because the proper characterization of
certain components of our income and assets is not entirely clear, and because our PFIC status for any taxable year will depend on the
composition of our income and assets and the value of our assets from time to time (which may be determined, in part, by reference to
the market price of our ordinary shares, which could be volatile), there can be no assurance that we will not be a PFIC for our current
taxable year or any future taxable year.

If we were a PFIC for any taxable year during
which a U. S. investor holds ordinary shares, certain adverse U. S. federal income tax consequences could apply to such U. S. investor. See
“ Item 10. Additional Information-E. Taxation - United States Federal Income Taxation - Passive Foreign Investment Company Rules.”

General Risk Factors

Any damage to our reputation or our brand
or failure to enhance our brand recognition may materially and adversely affect our business, financial condition, and results of operations.

Developing, maintaining, and expanding our reputation
and brand with customers, service providers, and others is critical to our success. Our brand may suffer if our marketing plans or goals
are unsuccessful. The importance of our brand and demand for our