Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 139

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 10
Chunk 139
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 S. federal income taxation under either an applicable tax treaty or the rules of Section 883 of the Code (“ Section 883”), as discussed below, a foreign corporation such as us will be subject to United States federal income taxation on its “shipping income” that is treated as derived from sources within the United States (“ U. S. source shipping income”). For U. S. federal income tax purposes, “ U. S. source shipping income” includes 50% of shipping income that is attributable to transportation that begins or ends, but that does not both begin and end, in the United States.

Shipping income attributable to transportation exclusively between non-U. S. ports will be considered to be 100% derived from sources entirely outside the United States. Shipping income derived from sources outside the United States will not be subject to any U. S. federal income tax.

Shipping income attributable to transportation exclusively between U. S. ports is considered to be 100% derived from U. S. sources. However, we are not permitted by United States law to engage in the transportation of cargoes that produces 100% U. S. source shipping income.

Table of Contents

Exemption of Operating Income from U. S. Federal Income Taxation

Under Section 883 and the Treasury Regulations promulgated thereunder, a foreign corporation will be exempt from U. S. federal income taxation of its U. S. source shipping income if:

  (1)      it is organized in a “qualified foreign country” which is one that grants an “equivalent exemption” from tax to corporations organized in the United States in respect of each category of shippi...  

  (2)      one of the following tests is met:  

  (A)      more than 50% of the value of its shares is beneficially owned, directly or indirectly, by “qualified shareholders”, which as defined includes individuals who are “residents” of a qualified for...  

  (B)      its shares are “primarily and regularly traded on an established securities market” in a qualified foreign country or in the United States, to which we refer as the “ Publicly-Traded Test”.  

The Marshall Islands, the jurisdiction where we and our ship-owning subsidiaries are incorporated, has been officially recognized by the IRS, as a qualified foreign country that grants the requisite “equivalent exemption” from tax in respect of each category of shipping income we earn and currently expect to earn in the future. Therefore, we will be exempt from U. S