Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 143

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 143
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 consequences to
them of the purchase, ownership and disposition of our ordinary shares.

Taxation of Dividends and Other Distributions on our Ordinary Shares

Subject to the passive foreign investment company
rules discussed below, the gross amount of distributions made by us to you with respect to the ordinary shares (including the amount of
any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but
only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U. S. federal
income tax principles). With respect to corporate U. S. Holders, the dividends will not be eligible for the dividends-received deduction
allowed to corporations in respect of dividends received from other U. S. corporations.

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With respect to non-corporate U. S. Holders, including
individual U. S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that
(1) the ordinary shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits
of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a
passive foreign investment company (as discussed below) for either our taxable year in which the dividend is paid or the preceding taxable
year, and (3) certain holding period requirements are met. Because there is no income tax treaty between the United States and the Cayman
Islands, clause (1) above can be satisfied only if the ordinary shares are readily tradable on an established securities market in the
United States. Under U. S. Internal Revenue Service authority, ordinary shares are considered for purpose of clause (1) above to be readily
tradable on an established securities market in the United States if they are listed on certain exchanges, which presently include the
Nasdaq. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our
ordinary shares, including the effects of any change in law after the date of this report.

To the extent that the amount of the distribution
exceeds our current and accumulated earnings and profits (as determined under U. S. federal income tax principles), it will be treated
first as a tax-free return of your tax basis in your ordinary shares, and to the extent the amount of the distribution exceeds your