Company: LI
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001410578-25-000678
Chunk: 227

Company: Li Auto Inc.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 10
Chunk 227
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 our ADSs or Class A ordinary shares that is, for U. S. federal income tax purposes:

  an individual who is a citizen or resident of the United States;  

Table of Contents

  a corporation (or other entity treated as a corporation for U. S. federal income tax purposes) created in, or organized under the law of the United States or any state thereof or the District o...  

  an estate the income of which is includible in gross income for U. S. federal income tax purposes regardless of its source; or  

  a trust (A) the administration of which is subject to the primary supervision of a U. S. court and which has one or more U. S. persons who have the authority to control all substantial decision...  

If a partnership (or other entity or arrangement treated as a partnership for U. S. federal income tax purposes) is a beneficial owner of our ADSs or Class A ordinary shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. Partnerships holding our ADSs or Class A ordinary shares and their partners are urged to consult their tax advisors regarding an investment in our ADSs or Class A ordinary shares.

For U. S. federal income tax purposes, it is generally expected that a U. S. Holder of ADSs will be treated as the beneficial owner of the underlying shares represented by the ADSs. The remainder of this discussion assumes that a U. S. Holder of our ADSs will be treated in this manner. Accordingly, deposits or withdrawals of Class A ordinary shares for ADSs will generally not be subject to U. S. federal income tax.

Passive Foreign Investment Company Considerations

A non-U. S. corporation, such as our company, will be classified as a PFIC for U. S. federal income tax purposes for any taxable year, if either (i) 75% or more of its gross income for such year consists of certain types of “passive” income (the “income test”) or (ii) 50% or more of the average percentage value of its assets (generally determined on the basis of a quarterly average) during such year is attributable to assets that produce or are held for the production of passive income (the “asset test”). For this purpose, cash and assets readily convertible into cash are categorized as passive assets and the company’s goodwill and other unbooked intangibles are taken into account. Passive income generally includes,