Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 74

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 74
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. S. holder’s holding period for the Class A Ordinary Shares), and (ii) any gain realized on the
sale or other disposition, including, under certain circumstances, a pledge, of Class A Ordinary Shares. Under the PFIC rules:

  such excess distribution and/or                                                                         

  such amount allocated to the                                                                                                     

  such amount allocated to each                                                                                                

  an interest charge generally                                                                                                        

If we are a PFIC for any taxable
year during which a U. S. holder holds our Class A Ordinary Shares and any of our non-United States subsidiaries is also a PFIC, such U. S.
holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application
of these rules. U. S. holders are advised to consult their tax advisors regarding the application of the PFIC rules to any of our subsidiaries.

As an alternative to the foregoing
rules, a U. S. holder of “marketable stock” in a PFIC may make a mark-to-market election. Since our Class A Ordinary Shares
have been approved for listing on Nasdaq, and provided that the Class A Ordinary Shares will be regularly traded on Nasdaq, a U. S. holder
holds Class A Ordinary Shares will be eligible to make a mark-to-market election if we are or were to become a PFIC. If a mark-to-market
election is made, the U. S. holder will generally (i) include as ordinary income for each taxable year that we are a PFIC the excess, if
any, of the fair market value of Class A Ordinary Shares held at the end of the taxable year over the adjusted tax basis of such Class
A Ordinary Shares and (ii) deduct as an ordinary loss the excess, if any, of the adjusted tax basis of the Class A Ordinary Shares over
the fair market value of such Class A Ordinary Shares held at the end of the taxable year, but only to the extent of the net amount previously
included in income as a result of the mark-to-market election. The U. S. holder’s adjusted tax basis in the Class A Ordinary Shares
would be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U. S. holder makes an effective mark-to-market
election, in each year that we are a PFIC, any gain recognized upon the sale or other disposition of the Class A Ordinary Shares will
be treated as ordinary income and