Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 143

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 10
Chunk 143
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 regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sa...  

We do not intend to have, or permit circumstances that would result in having, any vessel sailing to or from the United States on a regularly scheduled basis. Based on the foregoing and on the expected mode of our shipping operations and other activities, it is anticipated that none of our U. S. source shipping income will be “effectively connected” with the conduct of a U. S. trade or business.

United States Taxation of Gain on Sale of Vessels

Regardless of whether we qualify for an exemption under Section 883, we will not be subject to U. S. federal income tax with respect to gain realized on a sale of a vessel, provided the sale is considered to occur outside of the United States under U. S. federal income tax principles. In general, a sale of a vessel will be considered to occur outside of the United States for this purpose if title to the vessel, and risk of loss with respect to the vessel, pass to the buyer outside of the United States. It is expected that any sale of a vessel by us will be considered to occur outside of the United States.

U. S. Federal Income Taxation of United States Holders

As used herein, the term “ U. S. Holder” means a holder that for U. S. federal income tax purposes is a beneficial owner of our common shares and is an individual U. S. citizen or resident, a U. S. corporation or other U. S. entity taxable as a corporation, an estate the income of which is subject to U. S. federal income taxation regardless of its source, or a trust if (a) a court within the United States is able to exercise primary jurisdiction over the administration of the trust and one or more U. S. persons have the authority to control all substantial decisions of the trust or (b) the trust has a valid election in effect to be treated as a U. S. person.

If a partnership holds the common shares, the tax treatment of a partner will generally depend upon the status of the partner and upon the activities of the partnership. If you are a partner in a partnership holding the common shares, you are encouraged to consult your tax advisor.

Distributions

Subject to the discussion of passive foreign investment companies below, any distributions made by us with respect to our common shares to a U. S. Holder will generally constitute dividends to the extent of our current or accumulated earnings and profits