Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 138

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 138
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 Federal Income Tax Consequences to Non-U.S. Holders

The receipt of CAAS Cayman ordinary shares in
exchange for Company common stock in the Redomicile Merger will not be a taxable transaction to Non-U.S. Holders for U.S. federal income
tax purposes.

The U.S. federal income tax consequences of owning
and disposing of CAAS Cayman ordinary shares received in the Redomicile Merger will be the same as the U.S. federal income tax consequences
of owning and disposing of Company common stock before the Redomicile Merger, which are summarized below.

Distributions

Distributions with respect to CAAS Cayman ordinary
shares will generally be treated as dividends to the extent paid from CAAS Cayman’s current or accumulated earnings and profits
as determined for U.S. federal income tax purposes. If a distribution exceeds current and accumulated earnings and profits, the excess
will be treated first as a return of capital to the extent of the Non-U.S. Holder’s adjusted tax basis in its CAAS Cayman ordinary
shares and thereafter as capital gain from the sale or exchange of such ordinary shares, subject to the tax treatment described below
in “—Sale, Exchange or Other Taxable Disposition of CAAS Cayman Ordinary Shares.”

Except as described below, dividends paid to a
Non-U.S. Holder are subject to withholding of U.S. federal income tax at a 30% rate or at a lower rate as may be specified by an applicable
income tax treaty. In addition, even if a Non-U.S. Holder is eligible for a lower treaty rate, CAAS Cayman and other payors will generally
be required to withhold at a 30% rate (rather than the lower treaty rate) on dividend payments, unless such Non-U.S. Holder has furnished
to CAAS Cayman or another payor:

| · | a                                                                                             
 valid IRS Form W-8BEN or W-8BEN-E or an acceptable substitute form upon which such Non-U.S.   
 Holder certifies, under penalties of perjury, its status as a non-U.S. person and entitlement 
 to the lower treaty rate with respect to such payments; or                                    |
| · | in                                                                                            
 the case of payments made outside the United States to an offshore account (generally, an     
 account maintained at an office or branch of a bank or other financial institution at any     
 location outside the United States), other documentary evidence establishing such Non-U.S.    
 Holder’s entitlement