Company: FUFU
Filing Date: 2025-11-07
Form Type: F-3
Source: 0001213900-25-107483
Chunk: 40

Company: Bitfufu Inc.
Filing Date: 2025-11-07
Form: F-3
Chunk 40
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 DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U.S. FEDERAL INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. HOLDERS SHOULD CONSULT WITH THEIR TAX ADVISORS REGARDING THE PARTICULAR TAX CONSEQUENCES TO THEM OF THE OWNERSHIP AND DISPOSITION OF CLASS A ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECTS OF U.S. FEDERAL, STATE, LOCAL, AND OTHER TAX LAWS.

Our Tax Residence for U.S. Federal Income Tax Purposes

Under current U.S. federal
income tax law, a corporation generally is considered a resident for U.S. federal income tax purposes in its place of organization
or incorporation. Accordingly, under the generally applicable U.S. federal income tax rules, we would generally be classified as
a non-U.S. corporation (and, therefore, not a U.S. tax resident). Section 7874 of the Code and the Treasury Regulations
promulgated thereunder, however, contain specific rules (more fully discussed below) that may cause a non-U.S. corporation to be
treated as a U.S. corporation for U.S. federal income tax purposes. If it were determined that we should be taxed as a U.S. corporation
for U.S. federal income tax purposes under section 7874 of the Code, we would be liable for U.S. federal income tax on
our income like any other U.S. corporation, and certain distributions made by us to non-U.S. holders of Class A Ordinary
Shares would be subject to U.S. withholding tax at the rate of 30% or such lower rate as provided by an applicable treaty. As a result,
taxation as a U.S. corporation could have a material adverse effect on our financial position and results from operations. The section 7874
rules are complex and require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties
as to their application.

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Under section 7874 of
the Code, a corporation created or organized outside the United States (i.e., a non-U.S. corporation) will nevertheless be treated
as a U.S. corporation for U.S. federal income tax purposes (and, therefore, be a U.S. tax resident subject to U.S. federal
income tax on its worldwide income) if (1) the non-U.S. corporation