Company: MDCXW
Filing Date: 2025-09-29
Form Type: S-1
Source: 0001062993-25-015839
Chunk: 211

Company: Medicus Pharma Ltd.
Filing Date: 2025-09-29
Form: S-1
Chunk 211
---
 Non-U.S. Holder's holding period for such common shares, in which case, subject to the exception set forth in the last sentence of the next paragraph, such gain will be subject to U.S. federal income tax as described in "U.S. Trade or Business Income" below.

In general, a corporation is a USRPHC if the fair market value of its "United States real property interests" equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business. We believe that we are not currently, and we do not anticipate becoming in the future, a USRPHC for U.S. federal income tax purposes. In the event that we are determined to be a USRPHC, gain arising from the sale, exchange or other taxable disposition of common shares by a Non-U.S. Holder will, nonetheless, not be subject to tax as U.S. trade or business income if our common shares are "regularly traded" (as defined by applicable Treasury regulations) on an established securities market unless the Non-U.S. Holder's holdings (direct and indirect, taking into account certain constructive ownership rules) exceed certain thresholds.

<div align='center'>146</div>

U.S. Trade or Business Income

For purposes of this discussion, dividends paid in respect of common shares and gain on the sale, exchange or other taxable disposition of common shares will be considered to be "U.S. trade or business income" if (A)(i) such dividends or gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States and (ii) the Non-U.S. Holder is eligible for the benefits of an applicable income tax treaty and such treaty requires that such dividends or gain is attributable to a permanent establishment (or, if the Non-U.S. Holder is an individual, a fixed base) that the Non-U.S. Holder maintains in the United States or (B) with respect to gain, we are or have been a USRPHC at any time during the shorter of the five-year period ending on the date of the disposition of our common shares and the Non-U.S. Holder's holding period for our common shares (subject to the exception set forth above in the last sentence of the second paragraph of "Dispositions of Common Shares"). Generally, a Non-U.S. Holder's U.S. trade or business income is not subject to U.S. federal withholding tax