Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 152

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 152
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 was
established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such indirect transfer may be
subject to PRC enterprise income tax, and the transferee would be obligated to withhold the applicable taxes, currently at a rate of 10%
for the transfer of equity interests in a PRC resident enterprise. We and our non-PRC resident investors may be at risk of being required
to file a return and being taxed under Circular 7, and we may be required to expend valuable resources to comply with Bulletin 37, or
to establish that we should not be taxed under Circular 7 and Bulletin 37. See “ Item 3. Key Information - D. Risk Factors - Risks
Related to Doing Business in China - Our shareholders face uncertainties with respect to indirect transfers of equity interests in
PRC resident enterprises by their non-PRC holding companies.”

United States Federal Income Tax Considerations

The following is a summary of material U. S. federal
income tax considerations that are likely to be relevant to the purchase, ownership and disposition of our Class A ordinary shares or
ADSs by a U. S. Holder (as defined below).

This summary is based on provisions of the Internal
Revenue Code of 1986, as amended, or the “ Code,” and regulations, rulings and judicial interpretations thereof, in force as
of the date hereof. Those authorities may be changed at any time, perhaps retroactively, so as to result in U. S. federal income tax consequences
different from those summarized below.

This summary is not a comprehensive discussion
of all of the tax considerations that may be relevant to a particular investor’s decision to purchase, hold, or dispose of Class
A ordinary shares or ADSs. In particular, this summary is directed only to U. S. Holders that hold Class A ordinary shares or ADSs as capital
assets and does not address all of the tax consequences that may be applicable to U. S. Holders who may be subject to special tax rules,
such as banks, brokers or dealers in securities or currencies, traders in securities electing to mark-to-market, financial institutions,
insurance companies, tax exempt entities, regulated investment companies, partnerships (including any entities or arrangements that are
treated as partnerships for U. S. federal income tax purposes) and the partners therein, holders that own or are treated as owning 10%
or more of our shares (measured by vote or value), persons