Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 179

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 179
---
. Federal Income Tax Consequences for U. S. Holders

Distributions

In the event that distributions are paid on our
common stock, the gross amount of such distributions will be included in the gross income of the U. S. holder as dividend income on the
date of receipt to the extent that the distribution is paid out of current or accumulated earnings and profits, as determined under U. S.
federal income tax principles. Such dividends will be eligible for the dividends-received deduction allowed to corporations in respect
of dividends received from other U. S. corporations. Dividends received by non-corporate U. S. holders, including individuals, may be subject
to reduced rates of taxation under current law. A U. S. holder may be eligible to claim a foreign tax credit with respect to any PRC withholding
tax imposed on dividends paid by us. However, the foreign tax credit rules are complex, and their application in connection with Section
7874 of the Code and the Agreement Between the Government of the United States of America and the Government of the People’s Republic
of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income, or the U. S.-PRC Tax Treaty,
is not entirely clear at this time. U. S. holders should consult their own tax advisors with respect to any benefits they may be entitled
to under the foreign tax credit rules and the U. S.-PRC Tax Treaty.

The extent that dividends paid on our Common Stock
exceed current and accumulated earnings and profits, the distributions will be treated first as a tax-free return of tax basis on our
Common Stock, and to the extent that the amount of the distribution exceeds tax basis, the excess will be treated as gain from the disposition
of those common stock. Because Section 7874 of the Code has applied to treat us as a U. S. corporation only since the consummation of the
Share Exchange in 2014, we may not be able to demonstrate to the IRS the extent to which a distribution on our common stock exceeds our
current and accumulated earnings and profits (as determined under U. S. federal income tax principles), in which case all of such distribution
will be treated as a dividend for U. S. federal income tax purposes.

Sale or Other Disposition

U. S. holders of our Common Stock will recognize
taxable gain or loss on any sale, exchange, or other taxable disposition of common stock