Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 73

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 73
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 only for a year in which such U. S. holder elects to do so for all creditable foreign income taxes. The rules governing the foreign
tax credit are complex. U. S. holders are advised to consult their tax advisors regarding the availability of the foreign tax credit under
their particular circumstances.

Sale or Other Disposition of Class A Ordinary
Shares

Subject to the PFIC rules
discussed below, a U. S. holder will generally recognize capital gain or loss upon the sale or other disposition of Class A Ordinary Shares
in an amount equal to the difference between the amount realized upon the disposition and the U. S. holder’s adjusted tax basis in
such ordinary shares. Any capital gain or loss will be long-term if the Class A Ordinary Shares have been held for more than one year
and will generally be United States source gain or loss for United States foreign tax credit purposes. Long-term capital gain of non-corporate
U. S. holders is generally eligible for a reduced rate of taxation. The deductibility of a capital loss may be subject to limitations.
In the event that we are treated as a PRC “resident enterprise” under the Enterprise Income Tax Law and gain from the disposition
of the Class A Ordinary Shares is subject to tax in the PRC, a U. S. holder that is eligible for the benefits of the income tax treaty
between the United States and the PRC may elect to treat the gain as PRC source income. U. S. holders are advised to consult tax advisors
regarding the tax consequences if a foreign tax is imposed on a disposition of our Class A Ordinary Shares, including the availability
of the foreign tax credit under their particular circumstances and the election to treat any gain as PRC source.

Passive Foreign Investment Company Rules

If we are a PFIC for any taxable
year during which a U. S. holder holds our Class A Ordinary Shares, and unless the U. S. holder makes a mark-to-market election (as described
below), the U. S. holder will generally be subject to special tax rules that have a penalizing effect, regardless of whether we remain
a PFIC, for subsequent taxable years, on (i) any excess distribution that we make to the U. S. holder (which generally means any distribution
paid during a taxable year to a U. S. holder that is greater than 125% of the average annual distributions paid in the three preceding
taxable years or, if shorter, the U