Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 144

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 10
Chunk 144
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 concerning the application of the PFIC rules to our shares and redeemable warrants under their particular circumstances.

Non-U. S. Holders

Dividends (including constructive dividends) paid or deemed paid to a Non-U. S. Holder in respect to our securities generally will not be subject to U. S. federal income tax, unless the dividends are effectively connected with the Non-U. S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base that such holder maintains or maintained in the United States).

In addition, a Non-U. S. Holder generally will not be subject to U. S. federal income tax on any gain attributable to a sale or other taxable disposition of our securities unless such gain is effectively connected with its conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base that such holder maintains or maintained in the United States) or the Non-U. S. Holder is an individual who is present in the United States for 183 days or more in the taxable year of sale or other disposition and certain other conditions are met (in which case, such gain from U. S. sources generally is subject to U. S. federal income tax at a 30% rate or a lower applicable tax treaty rate).

Dividends and gains that are effectively connected with the Non-U. S. Holder’s conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base that such holder maintains or maintained in the United States) generally will be subject to regular U. S. federal income tax at the same regular U. S. federal income tax rates applicable to a comparable U. S. Holder and, in the case of a Non-U. S. Holder that is a corporation for U. S. federal income tax purposes, may also be subject to an additional branch profits tax at a 30% rate or a lower applicable tax treaty rate.

The U. S. federal income tax treatment of a Non-U. S. Holder’s exercise of redeemable warrants, or the lapse of redeemable warrants held by a Non-U. S. Holder, generally will correspond to the U. S. federal income tax treatment of the exercise or lapse of redeemable warrants by a U. S. Holder, as described under “U. S.