Company: CNTB
Filing Date: 2025-09-10
Form Type: POS AM
Source: 0001193125-25-200186
Chunk: 101

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-09-10
Form: POS AM
Chunk 101
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 the Treaty may elect to treat the gain as PRC-source income for foreign tax credit purposes. If you are not eligible for the benefits of the
Treaty or you fail to make the election to treat any gain as PRC- source, you may not be able to claim foreign tax credits arising from any PRC tax imposed on the disposition of the Ordinary Shares unless such credit can be applied (subject to
applicable limitations) against U.S. federal income tax due on other income derived from foreign sources in the same income category (generally, the passive category). U.S. Treasury regulations may restrict the availability of any such foreign tax
credit based on the nature of the tax imposed by the foreign jurisdiction, though recent notices from the U.S. Internal Revenue Service indicate that the U.S. Department of Treasury and the U.S. Internal Revenue Service are considering proposing
amendments to such U.S. Treasury regulations and allow, subject to certain conditions, taxpayers to defer the application of many aspects of such U.S. Treasury regulations until further guidance is issued.

If the proceeds received (or deemed received) by a U.S. Holder upon a sale or other taxable disposition of Ordinary
Shares are not paid in U.S. dollars, the amount realized by the U.S. Holder generally will be the U.S. dollar value of the payment received determined by reference to the spot rate of exchange on the date of the sale or other taxable
disposition. However, if the Ordinary Shares are traded on an established securities market for U.S. federal income tax purposes, a cash basis U.S. Holder (and if it elects, an accrual method U.S. Holder) will determine the U.S. dollar value of
the amount realized in a non-U.S. dollar currency with respect to the Ordinary Shares, as applicable, by translating the amount received (or deemed received) at the spot rate of exchange on the settlement
date of the sale or other taxable disposition. If an accrual method U.S. Holder makes the election described above, the election must be applied consistently from year to year and cannot be changed without the consent of the U.S. Internal Revenue
Service. An accrual method U.S. Holder that does not make the election will recognize foreign currency exchange gain or loss to the extent attributable to the difference between the exchange rates on the date of the sale or other taxable disposition
and the settlement date.

31

U.S. Holders should consult their tax advisors regarding how to account for any payments made in