Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 86

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 86
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ers should
consult their tax advisors regarding the tax consequences of a cashless exercise of the warrants.

We
intend to treat the exercise of a warrant occurring after giving notice of an intention to redeem the warrant as described in Section
“ Warrants Description of Securities Exercise, Lapse or Redemption of a Warrant

Subject
to the PFIC rules described below, if we redeem warrants for cash pursuant to the redemption provisions described in Section “ Warrants Description of Securities Taxation
on the Disposition of Securities

Possible
Constructive Distributions

The
terms of each warrant provide for an adjustment to the number of ordinary shares for which the warrant may be exercised or to the exercise
price of the warrant in certain events, as discussed in Section “ Warrants Description of Securities Taxation of Distributions Paid on Ordinary Shares

  56  

Unearned
Income Medicare Tax

Under
current tax law, U. S. Holders that are individual, estates or trusts and whose income exceeds certain thresholds generally will be subject
to a 3.8% Medicare contribution tax on unearned income, including, among other things, dividends on, and gains from the sale or other
disposition of, our securities, subject to certain limitations and exceptions. Under current regulations, in the absence of a special
election, such unearned income generally would not include income inclusions under the qualified election fund (“ QEF”) rules
discussed below under “ Passive Foreign Investment Company Rules,” but would include distributions of earnings and profits
from a QEF. U. S. Holders should consult their own tax advisors regarding the effect, if any, of such tax on their ownership and disposition
or our securities.

Passive
Foreign Investment Company Rules

A
foreign (i. e., non-U. S.) corporation will be a PFIC for U. S. federal income tax purposes if at least 75% of its gross income in a taxable
year of such foreign corporation, including its pro rata pro rata

If
we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U. S. Holder of our
securities and, in the case of our ordinary shares, the U. S. Holder did not make a timely QEF election for our first taxable year as
a PFIC in which the U. S. Holder held (or was deemed to hold) such ordinary shares, a QEF election along with a deemed sale