Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 201

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 201
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 withholding taxes imposed on dividends
received on the Class A Ordinary Shares. A U. S. Holder who does not elect to claim a foreign tax credit for foreign income tax withheld
may instead claim a deduction for U. S. federal income tax purposes in respect of such withholding, but only for a year in which such investor
elects to do so for all creditable foreign income taxes. For purposes of calculating the foreign tax credit limitation, dividends paid
by us will, depending on the circumstances of the U. S. Holder, be either general or passive income.

While we do not expect to
pay dividends in the near future, in the event any dividends are paid and if a dividend is paid in non-U. S. currency, it must be included
in a U. S. Holder’s income as a U. S. dollar amount based on the exchange rate in effect on the date such dividend is actually or
constructively received, regardless of whether the dividend is in fact converted into U. S. dollars. If the dividend is converted to U. S.
dollars on the date of receipt, a U. S. Holder generally will not recognize a foreign currency gain or loss. If the non-U. S. currency is
converted into U. S. dollars on a later date, however, the U. S. Holder must include in income any gain or loss resulting from any exchange
rate fluctuations. Such gain or loss will generally be ordinary income or loss and will be from sources within the United States for foreign
tax credit limitation purposes. U. S. Holders should consult their own tax advisors regarding the tax consequences to them if we pay dividends
in non-U. S. currency.

Sale or Other Taxable
Disposition of Ordinary Shares

Subject to the discussion
below under “ Passive Foreign Investment Company Rules,” gain or loss realized on the sale or other taxable disposition of
Class A Ordinary Shares will be capital gain or loss, and will be long-term capital gain or loss if the U. S. Holder held the Class A Ordinary
Shares for more than one year. The amount of the gain or loss will equal the difference between the U. S. Holder’s tax basis in the
Class A Ordinary Shares disposed of and the amount realized on the disposition. Long-term capital gain of a non-corporate U. S. Holder
is generally taxed at preferential rates. This gain or loss will generally be U. S.-source gain or loss for foreign tax credit purposes.
The deductibility