Company: CNTB
Filing Date: 2025-09-10
Form Type: POS AM
Source: 0001193125-25-200186
Chunk: 100

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-09-10
Form: POS AM
Chunk 100
---
 to claim a foreign tax credit for foreign tax withheld, you may instead claim a deduction for U.S. federal income tax purposes for the foreign tax withheld, but only for a year in which
you elect to do so for all creditable foreign income taxes. If a refund of the tax withheld is available under the laws of the jurisdiction imposing such withholding tax, then the amount of tax withheld that is refundable will not be eligible for
credit against a U.S. Holder’s U.S. federal income tax liability (and will not be eligible for the deduction against a U.S. Holder’s U.S. federal taxable income).

The rules relating to the determination of the foreign tax credit are complex, and U.S. Holders should consult their tax
advisors to determine whether and to what extent a credit would be available in their particular circumstances, including the effects of any applicable income tax treaties.

Taxation of a Disposition of Ordinary Shares

Subject to the PFIC rules discussed below, upon a sale or other taxable disposition of Ordinary Shares, a U.S. Holder will
generally recognize a capital gain or loss for U.S. federal income tax purposes in an amount equal to the difference between the amount realized for such Ordinary Shares and such U.S. Holder’s tax basis in such Ordinary Shares. Any such gain
or loss will be treated as long-term capital gain or loss if the U.S. Holder’s holding period in the Ordinary Shares at the time of the disposition exceeds one year. Long-term capital gain of individual U.S. Holders generally will be subject
to U.S. federal income tax at reduced tax rates. The deductibility of capital losses is subject to limitations.

Any such
gain or loss that you recognize generally will be treated as United States source income or loss for foreign tax credit limitation purposes. Accordingly, in the event any foreign tax (including withholding tax) is imposed upon the sale or other
taxable disposition of Ordinary Shares, a U.S. Holder generally may not be able to utilize foreign tax credits unless such U.S. Holder has foreign source income or gain in the same category from other sources. However, if we are treated as a
“resident enterprise” for PRC tax purposes (see “Material Tax Considerations—People’s Republic of China Taxation”), we may be eligible for the benefits of the Treaty. In such event, if PRC tax were to be imposed
on any gain from the disposition of the Ordinary Shares, a U.S. Holder that is eligible for the benefits of