Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 150

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 10
Chunk 150
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 credits to offset only the portion
of its U. S. federal income tax liability that is attributable to foreign-source income. Because under the Code, capital gains of U. S.
persons are generally treated as U. S.-source income, this limitation may preclude a U. S. Holder from claiming a credit for all or a portion
of any PRC taxes imposed on any such gains. However, U. S. Holders that are eligible for the benefits of the Treaty may be able to elect
to treat the gain as PRC-source and therefore claim foreign tax credits in respect of PRC taxes on such disposition gains. U. S. Holders
should consult their tax advisers regarding their eligibility for the benefits of the Treaty and the credibility of any PRC tax on disposition
gains in their particular circumstances.

Passive Foreign Investment Company Rules

In general, a non-U. S. corporation is a PFIC for
any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii) 50% or more of the average quarterly
value of its assets consists of assets that produce, or are held for the production of, passive income. For purposes of the above calculations,
a non-U. S. corporation that owns at least 25% by value of the shares of another corporation is treated as if it held its proportionate
share of the assets of the other corporation and received directly its proportionate share of the income of the other corporation. Passive
income generally includes dividends, interest, rents, royalties, and certain gains. Cash is a passive asset for these purposes.

Based on the expected composition of our income
and assets and the value of our assets, including goodwill, we do not expect to be a PFIC for our current taxable year. However, the proper
application of the PFIC rules to a company with a business such as ours is not entirely clear. Because the proper characterization of
certain components of our income and assets is not entirely clear, and because our PFIC status for any taxable year will depend on the
composition of our income and assets and the value of our assets from time to time (which may be determined, in part, by reference to
the market price of our ordinary shares, which could be volatile), there can be no assurance that we will not be a PFIC for our current
taxable year or any future taxable year.

If we were a PFIC for any taxable year and any
of