Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 116

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 10
Chunk 116
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 basis of its Ordinary Shares over the fair market value of its Ordinary Shares at the end of its taxable year
(but only to the extent of the net amount of previously included income as a result of the mark-to-market election). The U. S. Holder’s
basis in its Ordinary Shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or
other taxable disposition of its Ordinary Shares will be treated as ordinary income.

The
mark-to-market election is available only for “marketable stock,” generally, stock that is regularly traded on a national
securities exchange that is registered with the SEC, including Nasdaq (on which the Ordinary Shares will be listed), or on a foreign
exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair
market value. U. S. Holders should consult their tax advisors regarding the availability and tax consequences of a mark-to-market election
with respect to the Ordinary Shares under their particular circumstances.

If
we are a PFIC and, at any time, has a foreign subsidiary that is also classified as a PFIC, U. S. Holders generally would be deemed to
own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described
above if we receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC or the U. S. Holders otherwise
were deemed to have disposed of an interest in the lower-tier PFIC. A mark-to-market election generally would not be available with respect
to such lower-tier PFIC. U. S. Holders are urged to consult their tax advisors regarding the tax issues raised by lower-tier PFICs.

A
U. S. Holder that owns (or is deemed to own) shares in a PFIC during any taxable year of the U. S. Holder, may have to file an IRS Form
8621 (whether or not a QEF or mark-to-market election is made) and such other information as may be required by the U. S. Treasury Department.
Failure to do so, if required, will extend the statute of limitations until such required information is furnished to the IRS.

The
rules dealing with PFICs and with the QEF and mark-to-market elections are very complex and are affected by various factors in addition
to those described above. Accordingly, U. S. Holders of