Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 274

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 10
Chunk 274
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 Any gain or loss recognized by a U. S. Holder on the sale or exchange of Class A ADSs generally will be treated as U. S. source gain or loss for foreign tax credit purposes.

If the Company redeems Class A ADSs, the treatment of such redemption for U. S. federal income tax purposes will depend on whether the redemption qualifies as a sale of such Class A ADSs pursuant to Section 302 of the Code or whether the U. S. Holder will be treated as receiving a corporate distribution. Whether that redemption qualifies for sale treatment will depend largely on the total number of shares of the Company’s stock treated as held by the U. S. Holder (including any stock constructively owned by the U. S. Holder as a result of, among other things, owning multiple classes of ADSs) relative to all of shares of the Company’s stock both before and after the redemption. A redemption of stock generally will be treated as a sale of the stock (rather than as a corporate distribution) if the redemption is “substantially disproportionate” with respect to the U. S. Holder, results in a “complete termination” of the U. S. Holder’s interest in the Company or is “not essentially equivalent to a dividend” with respect to the U. S. Holder. These tests are explained more fully below.

In determining whether any of the foregoing tests are satisfied, a U. S. Holder takes into account not only Class A ADSs actually owned by the U. S. Holder, but also shares of stock of the Company that are actually or constructively owned by such U. S. Holder. A U. S. Holder may constructively own, in addition to ADSs owned directly, ADSs owned by certain related individuals and entities in which the U. S. Holder has an interest or that have an interest in such U. S. Holder, as well as any ADSs the U. S. Holder has a right to acquire by exercise of an option. To meet the substantially disproportionate test, the percentage of the Company’s outstanding voting stock actually and constructively owned by the U. S. Holder immediately following the redemption of such Class A ADSs must, among other requirements, be less than 80% of the percentage of the Company’s outstanding voting ADSs actually and constructively owned by the U. S. Holder immediately before the redemption. There will be a complete termination of a U. S. Holder’s interest if either all the ADSs actually and constructively owned by