Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 110

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 10
Chunk 110
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 federal income tax treatment of a partner in the partnership generally will depend
on the status of the partner and the activities of the partner and the partnership. Partners of any partnership holding Ordinary Shares
are urged to consult their tax advisors.

THIS
DISCUSSION IS ONLY A SUMMARY OF CERTAIN MATERIAL U. S. FEDERAL INCOME TAX CONSIDERATIONS ASSOCIATED WITH THE OWNERSHIP AND DISPOSITION
OF ORDINARY SHARES. EACH HOLDER OF ORDINARY SHARES IS URGED TO CONSULT ITS TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES
TO SUCH HOLDER OF THE OWNERSHIP AND DISPOSITION OF ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL, AND NON-U. S.
TAX LAWS.

Taxation
of distributions

Subject
to the PFIC rules discussed below, a U. S. Holder generally will be required to include in gross income as dividends the amount of any
cash distribution (including the amount of any tax withheld) paid on Ordinary Shares to the extent the distribution is paid out of our
current or accumulated earnings and profits (as determined under U. S. federal income tax principles). Such dividends paid by us will
be taxable to a corporate U. S. Holder at regular rates and will not be eligible for the dividends-received deduction generally allowed
to domestic corporations in respect of dividends received from other domestic corporations. Distributions in excess of such earnings
and profits generally will be applied against and reduce (but not below zero) the U. S. Holder’s basis in its Ordinary Shares and,
to the extent in excess of such basis, will be treated as gain from the sale or exchange of such Ordinary Shares (see “-Gain or
loss on sale or other taxable disposition of Ordinary Shares” below). The amount of any dividend income paid in foreign currency
will be the U. S. dollar amount calculated by reference to the exchange rate in effect on the date of actual or constructive receipt,
regardless of whether the payment is in fact converted into U. S. dollars. If the dividend is converted into U. S. dollars on the date
of receipt, a U. S. Holder should not be required to recognize foreign currency gain or loss in respect of the dividend income. A U. S.
Holder may have foreign currency gain or loss if the dividend is converted into U. S. dollars after the date of receipt. Any foreign currency
gain or loss will be treated as ordinary income or ordinary loss