Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 94

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 94
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 depend, in part, on how, and how quickly, we use our liquid assets and cash. Under circumstances where we retain significant
amounts of liquid assets, or if the consolidated affiliated entities were not treated as owned by us for United States federal income
tax purposes, our risk of being classified as a PFIC may substantially increase. Because there are uncertainties in the application of
the relevant rules and PFIC status is a factual determination made annually after the close of each fiscal year, there can be no
assurance that we will not be a PFIC for the current fiscal year ended December 31, 2023 or any future fiscal year or that the IRS
will not take a contrary position. If we are classified as a PFIC for any year during which a U.S. Holder holds the ADSs or ordinary shares,
we generally would continue to be treated as a PFIC for all succeeding years during which such U.S. holder holds the ADSs or ordinary
shares.

The discussion below under “Taxation of
distributions on ADSs and ordinary shares” and “Sale or other disposition of ADSs or ordinary shares” is written on
the basis that we will not be classified as a PFIC for United States federal income tax purposes.

The United States federal income tax rules that
apply if we are classified as a PFIC for the current fiscal year or any subsequent fiscal year are discussed below under “Passive
foreign investment company rules.”

<div align='center'>S-53</div>

Taxation of distributions on ADSs and ordinary shares

Subject to the PFIC rules described below,
any cash distributions (including the amount of any PRC tax withheld) paid on the ADSs or ordinary shares out of our current or accumulated
earnings and profits, as determined under United States federal income tax principles, will generally be includible in the gross income
of a U.S. Holder as dividend income on the day actually or constructively received by the U.S. Holder, in the case of ordinary shares,
or by the depositary bank, in the case of ADSs. Because we do not intend to determine our earnings and profits on the basis of United
States federal income tax principles, any distribution will generally be treated as a “dividend” for United States federal
income tax purposes. Under current law, a non-corporate recipient of dividend income will generally be subject to tax on dividend income
from a “qualified foreign corporation” at the lower rates applicable to “qualified dividend income” rather