Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 166

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 10
Chunk 166
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ed as capital gain. Because we may not account for our earnings and profits in accordance with U. S. federal income tax principles,
U. S. Holders should expect all distributions to be reported to them as dividends.

Distributions
on our Ordinary Shares that are treated as dividends generally will constitute income from sources outside the United States for
foreign tax credit purposes and generally will constitute passive category income. Such dividends will not be eligible for the “dividends
received” deduction generally allowed to corporate shareholders with respect to dividends received from U. S. corporations.
Dividends paid by a “qualified foreign corporation” to certain non-corporate U. S. Holders may be eligible for taxation
at a reduced capital gains rate rather than the marginal tax rates generally applicable to ordinary income, provided that a holding period
requirement (more than 60 days of ownership, without protection from the risk of loss, during the 121-day period beginning 60 days
before the ex-dividend date) and certain other requirements are met. Each U. S. Holder is advised to consult its tax advisors regarding
the availability of the reduced tax rate on dividends to its particular circumstances. However, if we are a PFIC for the taxable year
in which the dividend is paid or the preceding taxable year (see discussion above under “ PFIC Consequences”), we will not
be treated as a qualified foreign corporation, and therefore, the reduced capital gains tax rate described above will not apply.

Dividends
will be included in a U. S. Holder’s income on the date of the depositary’s receipt of the dividend. The amount of any
dividend income paid in Cayman Islands dollars will be the U. S. dollar amount calculated by reference to the exchange rate in effect
on the date of receipt, regardless of whether the payment is in fact converted into U. S. dollars. If the dividend is converted into
U. S. dollars on the date of receipt, a U. S. Holder should not be required to recognize foreign currency gain or loss in respect
to the dividend income. A U. S. Holder may have foreign currency gain or loss if the dividend is converted into U. S. dollars
after the date of receipt.

A
non-U. S. corporation (other than a corporation that is classified as a PFIC for the taxable year in which the dividend is paid or
the preceding taxable year) generally will be considered to be a qualified foreign corporation with respect to any dividend