Company: XCH
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0000950170-25-056976
Chunk: 165

Company: XCHG Ltd
Filing Date: 2025-04-23
Form: 20-F
Item: Item 10
Chunk 165
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 currency gain or loss if the dividend is converted into U. S. dollars after the date of receipt. Foreign currency gain or loss generally will be treated as U. S.-source gain or loss.

Dividends will be treated as foreign-source income for foreign tax credit purposes. As described in “ - PRC Tax Considerations,” dividends paid by us may be subject to PRC withholding tax. For U. S. federal income tax purposes, the amount of dividend income will include any amounts withheld in respect of PRC taxes. Subject to applicable limitations that vary depending upon the U. S. Holder’s circumstances and the discussion below regarding certain Treasury regulations, PRC taxes withheld from dividend payments (at a rate not exceeding the applicable rate provided in the Treaty if the U. S. Holder is eligible for Treaty benefits) generally will be creditable against a U. S. Holder’s U. S. federal income tax liability. The rules governing foreign tax credits are complex. For example, Treasury regulations provide that, in the absence of an election to apply the benefits of an applicable income tax treaty, in order for non-U. S. income taxes to be creditable, the relevant non-U. S. income tax rules must be consistent with certain U. S. federal income tax principles, and we have not determined whether the PRC income tax system meets this requirement. The U. S. Internal Revenue Service (the “ IRS”) released notices that provide relief from certain of the provisions of the Treasury regulations described above for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). In lieu of claiming a credit, a U. S. Holder may elect to deduct creditable non-U. S. income taxes, including PRC taxes, in computing its taxable income, subject to applicable limitations. An election to deduct creditable non-U. S. taxes instead of claiming foreign tax credits applies to all creditable non-U. S. taxes paid or accrued in the taxable year. U. S. Holders should consult their tax advisers regarding the availability of foreign tax credits in their particular circumstances.

Sale or Other Taxable Disposition of ADSs or Class A Ordinary Shares

The following is subject to the discussion under “ - Passive Foreign Investment Company Rules” below. A U. S. Holder generally will recognize capital gain or loss on the sale or other taxable disposition of ADSs or Class A ordinary shares in an amount equal to the difference between