Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 151

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 10
Chunk 151
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 our subsidiaries or other companies in which we own or are treated as owning equity interests were also a PFIC (any such entity referred
to as a Lower-tier PFIC), U. S. Holders would be deemed to own a proportionate amount (by value) of the shares of each Lower-tier PFIC
and would be subject to U. S. federal income tax according to the rules described in the subsequent paragraph on (i) certain distributions
by a Lower-tier PFIC and (ii) dispositions of shares of Lower-tier PFICs, in each case as if the U. S. Holders held such shares directly,
even though the U. S. Holders did not receive the proceeds of those distributions or dispositions.

In general, if we were a PFIC for any taxable
year during which a U. S. Holder holds ordinary shares, gain recognized by such U. S. Holder on a sale or other disposition (including certain
pledges) of its ordinary shares would be allocated ratably over that U. S. Holder’s holding period. The amounts allocated to the
taxable year of the sale or disposition and to any year before we became a PFIC would be taxed as ordinary income. The amount allocated
to each other taxable year would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for
that taxable year, and an interest charge would be imposed on the resulting tax liability for each such year. Furthermore, to the extent
that distributions received by a U. S. Holder in any year on its ordinary shares exceed 125% of the average of the annual distributions
on ordinary shares received during the preceding three years or the U. S. Holder’s holding period, whichever is shorter, such distributions
would be subject to taxation in the same manner. In addition, if we were a PFIC (or, with respect to a particular U. S. Holder, were treated
as a PFIC) for a taxable year in which we paid a dividend or for the prior taxable year, the favorable tax rates described above with
respect to dividends paid to certain non-corporate U. S. Holders would not apply.

Alternatively, if we were a PFIC and if our ordinary
shares were “regularly traded” on a “qualified exchange,” a U. S. Holder could make a mark-to-market election that
would result in tax treatment different from the general tax treatment for PFICs described in the preceding paragraph.