Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 151

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 151
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, however, intend to calculate
its earnings and profits under U. S. federal income tax principles. Therefore, U. S. Holders should expect that any distribution from the
Company generally will be treated for U. S. federal income tax purposes as a dividend. U. S. Holders should consult their own tax advisors
with respect to the appropriate U. S. federal income tax treatment of any distribution received from the Company.

Dividends
paid to non-corporate U. S. Holders by the Company in a taxable year in which it is treated as a PFIC, or in the immediately following
taxable year, will not be eligible for the special reduced rates normally applicable to long-term capital gains. In all other taxable
years, dividends paid by the Company should be taxable to a non-corporate U. S. Holder at the special reduced rates normally applicable
to long-term capital gains, provided that certain conditions are satisfied. (including a minimum holding period requirement). The Company
believes it was not a PFIC for the 2024 taxable year. However, no assurance can be provided that the Company will not be classified as
a PFIC for 2025 and, therefore, no assurance can be provided that a U. S. Holder will be able to claim a reduced rate for dividends paid
in 2024 or 2025 (if any). Please see the subsection above entitled “ Material U. S. Federal Income Tax Considerations - ’ Tax
Consequences if we are a Passive Foreign Investment Company’” for a more detailed discussion.

Under
current law, payments of dividends by the Company to non-Canadian investors are generally subject to a 25% Canadian withholding tax.
The rate of withholding tax applicable to U. S. Holders that are eligible for benefits under the Canada-United States Tax Convention (the
“ Convention

Subject
to certain limitations, a U. S. Holder will generally be entitled, at the election of the U. S. Holder, to a credit against its U. S. federal
income tax liability, or a deduction in computing its U. S. federal taxable income, for Canadian income taxes withheld by the Company.
This election is made on a year-by-year basis and applies to all foreign taxes paid (whether directly or through withholding) by a U. S.
Holder during a year. For purposes of the foreign tax credit limitation, dividends paid by the Company generally will constitute foreign
source income in the “passive