Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 99

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 99
---
s over the fair market value of such ADSs held at the end of the fiscal year, but only to the extent of the net amount previously
included in income as a result of the mark-to-market election. The U.S. Holder’s adjusted tax basis in the ADSs would be adjusted
to reflect any income or loss resulting from the mark-to-market election. If a U.S. Holder makes an effective mark-to-market election,
in each year that we are a PFIC any gain recognized upon the sale or other disposition of the ADSs will be treated as ordinary income
and any loss will be treated as ordinary loss, but only to the extent of the net amount previously included in income as a result of the
mark-to-market election. Because our ordinary shares are not listed on a stock exchange, U.S. Holders will not be able to make a mark-to-market
election with respect to our ordinary shares.

<div align='center'>S-55</div>

If a U.S. Holder makes
a mark-to-market election in respect of a corporation classified as a PFIC and such corporation ceases to be classified as a PFIC, the
U.S. Holder will not be required to take into account the mark-to-market gain or loss described above during any period that such corporation
is not classified as a PFIC.

Because a mark-to-market
election cannot be made for any lower-tier PFICs that a PFIC may own, a U.S. Holder who makes a mark-to-market election with respect to
the ADSs may continue to be subject to the general PFIC rules with respect to such U.S. Holder’s indirect interest in any of
our non-United States subsidiaries or other corporate entities in which we own equity interests that is classified as a PFIC.

We do not intend to provide
information necessary for U.S. Holders to make qualified electing fund elections, which, if available, would result in tax treatment different
from the general tax treatment for PFICs described above.

As discussed above under
“Taxation of distributions on ADSs and ordinary shares,” dividends that we pay on the ADSs or ordinary shares will not be
eligible for the reduced tax rate that applies to qualified dividend income if we are classified as a PFIC for the fiscal year in which
the dividend is paid or the preceding fiscal year. In addition, if a U.S. Holder owns the ADSs or ordinary shares during any fiscal year
that we are a PFIC, the holder must