Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 250

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 250
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 below under “ - Passive Foreign Investment Company Rules,” distributions paid on our Class A common shares, other than certain pro rata distributions of common shares, will be treated as dividends for U. S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined under U. S. federal income tax principles). Because we do not maintain calculations of our earnings and profits under U. S. federal income tax principles, we expect that distributions generally will be reported to U. S. Holders as dividends. Subject to applicable limitations, dividends paid to certain non-corporate U. S. Holders may be eligible for taxation as “qualified dividend income” and therefore may be taxable at rates applicable to long-term capital gains, so long as our Class A common shares are listed and traded on the Nasdaq or are readily tradable on another established securities market in the United States. U. S. Holders should consult their tax advisors regarding the availability of the reduced tax rate on dividends in their particular circumstances.

The amount of any dividend will generally be treated as foreign-source dividend income to U. S. Holders and will not be eligible for the dividends-received deduction generally available to U. S. corporations under the Code. Dividends will be included in a U. S. Holder’s income on the date of the U. S. Holder’s actual or constructive receipt of the dividend.

Sale or Other Disposition of Class A Common Shares

Subject to the discussion below under “ - Passive Foreign Investment Company Rules,” for U. S. federal income tax purposes, gain or loss realized on the sale or other disposition of our Class A common 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 common 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 common shares disposed of and the amount realized on the disposition, in each case as determined in U. S. dollars. This gain or loss will generally be U. S.-source gain or loss for foreign tax credit purposes. The deductibility of capital losses is subject to various limitations.

Passive Foreign Investment Company Rules

A non-U. S. corporation will be a PFIC for any taxable year in which either (1) 75% or more of its gross income consists of “passive income,” or (2) 50% or more of the average