Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 172

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 10
Chunk 172
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 S. Holder will be subject to tax on dividend income from a “qualified foreign corporation”
at a lower applicable capital gains rather than the marginal tax rates generally applicable to ordinary income provided that certain holding
period requirements are met. A non-U. S. corporation (other than a corporation that is classified as a PFIC for the taxable year in
which the dividend is paid or the preceding taxable year) will generally be considered to be a qualified foreign corporation (i) if
it is eligible for the benefits of a comprehensive tax treaty with the United States that the U. S. Secretary of Treasury determines
is satisfactory for purposes of this provision and includes an exchange of information program, or (ii) with respect to any dividend
it pays on stock that is readily tradable on an established securities market in the United States, including NYSE. It is unclear
whether dividends that we pay on our Class A Ordinary Shares will meet the conditions required for the reduced tax rate. However, in the
event that we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law, we may be eligible for the benefits
of the United States-PRC income tax treaty. If we are eligible for such benefits, dividends we pay on our Class A Ordinary Shares,
would be eligible for the reduced rates of taxation described in this paragraph. You are urged to consult your tax advisor regarding the
availability of the lower rate for dividends paid with respect to our Class A Ordinary Shares. Dividends received on our Class A Ordinary
Shares will not be eligible for the dividends-received deduction allowed to corporations.

Dividends will generally be
treated as income from foreign sources for U. S. foreign tax credit purposes and will generally constitute passive category income.
Depending on the U. S. Holder’s individual facts and circumstances, a U. S. Holder may be eligible, subject to a number
of complex limitations, to claim a foreign tax credit not in excess of any applicable treaty rate in respect of any foreign withholding
taxes imposed on dividends received on our Class A Ordinary Shares. A U. S. Holder who does not elect to claim a foreign tax credit
for foreign tax withheld may instead claim a deduction, for U. S. federal income tax purposes, in respect of such withholding, but
only for a year in which such U. S. Holder elects to do so for all creditable foreign income taxes. The rules governing the foreign
tax credit are complex and their outcome depends in large part on