Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 111

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 10
Chunk 111
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For
non-corporate U. S. Holders, subject to certain exceptions (including, but not limited to, dividends treated as investment income for
purposes of the investment interest deduction limitations), dividends generally will be taxed at the lower rates applicable to long-term
capital gains (see “-Gain or loss on sale or other taxable disposition of Ordinary Shares” below) only if the Ordinary Shares
are readily tradable on an established securities market in the United States, we are not treated as a PFIC at the time the dividend
is paid or in the preceding taxable year and certain holding period requirements are met. U. S. Holders should consult their tax advisors
regarding the availability of such lower rate for any dividends paid with respect to the Ordinary Shares.

For
foreign tax credit limitation purposes, dividends will generally be treated as passive category income. In the event we are deemed to
be a PRC resident enterprise under the EIT Law, a U. S. Holder may be subject to PRC withholding taxes on dividends paid, if any, on the
Ordinary Shares. A U. S. Holder may be eligible, subject to a number of complex limitations, to claim a foreign tax credit in respect
of any foreign withholding taxes imposed on dividends received on the Ordinary Shares. A U. S. Holder who does not elect to claim a foreign
tax credit for foreign withheld may instead claim a deduction for U. S. federal income tax purposes in respect of such withholding, but
only for a year in which such holder elects to do so for all creditable foreign income taxes. The rules governing foreign tax credits
are complex and U. S. Holders should therefore consult their tax advisors regarding the effect of the receipt of dividends for foreign
tax credit limitation purposes.

  66  

Gain
or loss on sale or other taxable disposition of Ordinary Shares

Subject
to the PFIC rules discussed below, a U. S. Holder generally will recognize capital gain or loss on the sale or other taxable disposition
of Ordinary Shares. Any such capital gain or loss generally will be long-term capital gain or loss if the U. S. Holder’s holding
period for such Ordinary Shares exceeds one year at the time of such sale or other taxable disposition.

The
amount of gain or loss recognized on a sale or other taxable disposition generally will be equal to the difference between (i) the sum
of the amount of cash and the fair market value of any property received in such disposition with respect to