Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 163

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 10
Chunk 163
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of the last taxable year in which we qualified as a PFIC, and any gain recognized from such deemed sale would be taxed under the PFIC
excess distribution regime. After the deemed sale election, the U. S. Holder’s Ordinary Shares would not be treated as shares
of a PFIC unless we subsequently become a PFIC.

If
we are a PFIC for any taxable year during which a U. S. Holder holds our Ordinary Shares and one of our non-U. S. subsidiaries
is also a PFIC (i. e., a lower-tier PFIC), such U. S. Holder would be treated as owning a proportionate amount (by value) of the shares
of the lower-tier PFIC and would be taxed under the PFIC excess distribution regime on distributions by the lower-tier PFIC and on gain
from the disposition of shares of the lower-tier PFIC even though such U. S. Holder would not receive the proceeds of those distributions
or dispositions. Any of our non-U. S. subsidiaries that have elected to be disregarded as entities separate from us or as partnerships
for U. S. federal income tax purposes would not be corporations under U. S. federal income tax law and, accordingly, cannot be
classified as lower-tier PFICs. However, non-U. S. subsidiaries that have not made the election may be classified as a lower-tier
PFIC if we are a PFIC during your holding period and the subsidiary meets the PFIC income test or PFIC asset test. Each U. S. Holder
is advised to consult its tax advisors regarding the application of the PFIC rules to any of our non-U. S. subsidiaries.

If
we are a PFIC, a U. S. Holder will not be subject to tax under the PFIC excess distribution regime on distributions or gain recognized
on our Ordinary Shares if a valid “mark-to-market” election is made by the U. S. Holder for our Ordinary Shares. An electing
U. S. Holder generally would take into account, as ordinary income each year, the excess of the fair market value of our Ordinary
Shares held at the end of such taxable year over the adjusted tax basis of such Ordinary Shares. The U. S. Holder would also take
into account, as an ordinary loss each year, the excess of the adjusted tax basis of such Ordinary Shares over their fair market value
at the end of the taxable year, but only to the extent of the excess of