Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 143

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 10
Chunk 143
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 treated as a partnership
for U. S. federal income tax purposes.

Taxation of Distributions

If we pay distributions in cash or other property
(other than certain distributions of our common shares or rights to acquire our common shares) to Non-U. S. holders of our common shares,
such distributions generally will constitute dividends for U. S. federal income tax purposes to the extent paid from our current or accumulated
earnings and profits, as determined under U. S. federal income tax principles. Distributions in excess of current and accumulated earnings
and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the Non-U. S. holder’s
adjusted tax basis in our common shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the
common shares and will be treated as described under “ Non-U. S. Holders - Sale, Taxable Exchange or Other Taxable Disposition
of Our Common Shares.”

Subject to the discussions below on effectively
connected income, dividends paid to a Non-U. S. holder of our common shares will be subject to U. S. federal withholding tax at a rate of
30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U. S. holder
furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate).
A Non-U. S. holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a
refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

If dividends paid to a Non-U. S. holder are effectively
connected with the Non-U. S. holder’s conduct of a trade or business within the United States (and, if required by an applicable
income tax treaty, the Non-U. S. holder maintains a permanent establishment in the United States to which such dividends are attributable),
the Non-U. S. holder will be exempt from the U. S. federal withholding tax described above. To claim the exemption, the Non-U. S. holder
generally must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected
with the Non-U. S. holder’s conduct of a trade or business within the United States.

Any such effectively connected dividends