Company: ZHIHF
Filing Date: 2025-04-15
Form Type: 20-F
Source: 0001410578-25-000729
Chunk: 226

Company: Zhihu Inc.
Filing Date: 2025-04-15
Form: 20-F
Item: Item 3
Chunk 226
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 under the Treaty, and the potential impact of the Treasury Regulations.

As mentioned above, we believe that we were a PFIC for the taxable year ended December 31, 2024, and we will likely be classified as a PFIC for our current taxable year. U. S. Holders are urged to consult their tax advisors regarding the tax considerations of the sale or other disposition of the ADSs or Class A ordinary shares in their particular circumstances.

Passive Foreign Investment Company Rules

As mentioned above, we believe that we were a PFIC for the taxable year ended December 31, 2024, and we will likely be classified as a PFIC for our current taxable year. If we are classified as a PFIC for any taxable year during which a U. S. Holder holds our ADSs or Class A ordinary shares, and unless the U. S. Holder makes a mark-to-market election (as described below), the U. S. Holder will generally be subject to special tax rules on (i) any excess distribution that we make to the U. S. Holder (which generally means any distribution paid during a taxable year to a U. S. Holder that is greater than 125 percent of the average annual distributions paid in the three preceding taxable years or, if shorter, the U. S. Holder’s holding period for the ADSs or Class A ordinary shares), and (ii) any gain realized on the sale or other disposition of ADSs or Class A ordinary shares. Under the PFIC rules:

  the excess distribution or gain will be allocated ratably over the U. S. Holder’s holding period for the ADSs or Class A ordinary shares;  

  the amount allocated to the current taxable year and any taxable years in the U. S. Holder’s holding period prior to the first taxable year in which we are classified as a PFIC (each, a “pre-PF...  

  the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that y...  

  an additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the tax attributable to each prior taxable year, other than a pre-PFIC year.  

Table of Contents

If we are a PFIC for any taxable year during which a U. S. Holder holds our ADSs or Class A ordinary shares and any of our subsidiaries, the VIE