Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 75

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 75
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 loss will be treated as ordinary loss, but only to the extent of the net amount previously included
in income as a result of the mark-to-market election. If a U. S. holder makes a mark-to-market election it will be effective for the taxable
year for which the election is made and all subsequent taxable years unless the Class A Ordinary Shares are no longer regularly traded
on a qualified exchange or the Internal Revenue Service consents to the revocation of the election.

If a U. S. holder makes a mark-to-market
election in respect of a PFIC and such corporation ceases to be a PFIC, the U. S. holder will not be required to take into account the
mark-to-market gain or loss described above during any period that such corporation is not a PFIC.

Because a mark-to-market election
cannot be made for any lower-tier PFICs that a PFIC may own, a U. S. holder who makes a mark-to-market election with respect to our Class
A Ordinary Shares may continue to be subject to the general PFIC rules with respect to such U. S. holder’s indirect interest in any
of our non-United States subsidiaries if any of them is a PFIC.

We do not intend to provide
information necessary for U. S. holders to make qualified electing fund elections, which, if available, would result in tax treatment different
from the general tax treatment for PFICs described above.

As discussed above under “ Dividends,”
dividends that we pay on our Class A Ordinary Shares will not be eligible for the reduced tax rate that applies to qualified dividend
income if we are a PFIC for the taxable year in which the dividend is paid or the preceding taxable year. In addition, if a U. S. holder
owns our Class A Ordinary Shares during any taxable year that we are a PFIC, such holder would generally be required to file an annual
IRS Form 8621. Each U. S. holder is advised to consult its tax advisors regarding the potential tax consequences to such holder if we are
or become a PFIC, including the possibility of making a mark-to-market election.

Information Reporting

Certain U. S. holders may be
required to report information to the IRS relating to an interest in “specified foreign financial assets,” including shares
issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign financial assets exceeds
US$50,000 (or a higher