Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 148

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 148
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 the period you hold our ordinary shares, then such ordinary shares
will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a “purging
election” for the year we cease to be a PFIC. A “purging election” creates a deemed sale of such ordinary shares at
their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election
will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result
of the purging election, you will have a new basis (equal to the fair market value of the ordinary shares on the last day of the last
year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your ordinary
shares for tax purposes.

You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our ordinary shares and the elections discussed above.

Information Reporting and Backup Withholding

Payments of dividends and sales proceeds that are
made within the United States or through certain U. S.-related intermediaries may be subject to information reporting and backup withholding,
unless (i) the U. S. Holder is a corporation or other “exempt recipient” or (ii) in the case of backup withholding, the U. S.
Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. Backup withholding
is not an additional tax. The amount of any backup withholding from a payment to a U. S. Holder will be allowed as a credit against the
U. S. Holder’s U. S. federal income tax liability and may entitle it to a refund, provided that the required information is timely
furnished to the IRS.

Information with respect to foreign financial assets

Certain U. S. Holders who are individuals (and, under
proposed regulations, certain entities) may be required to report information relating to an interest in our ordinary shares, subject
to certain exceptions (including an exception for ordinary shares held in accounts maintained by certain U. S. financial institutions).
U. S. Holders should consult their tax advisors regarding the effect, if any, of this legislation on their ownership and disposition of
our ordinary shares.

10. F. Dividends and