Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 72

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 72
---
 States federal income tax purposes. A non-corporate recipient of dividend
income will generally be subject to tax on dividend income from a “qualified foreign corporation” at a reduced United States
federal tax rate rather than the marginal tax rates generally applicable to ordinary income provided that certain holding period requirements
are met.

A non-United States corporation
(other than a corporation that is a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) will generally
be considered to be a qualified foreign corporation (a) if it is eligible for the benefits of a comprehensive tax treaty with the United
States which the Secretary of Treasury of the United States determines is satisfactory for purposes of this provision and which includes
an exchange of information program, or (b) with respect to any dividend it pays on stock which is readily tradable on an established securities
market in the United States. In the event we are deemed to be a resident enterprise under the PRC Enterprise Income Tax Law, we may be
eligible for the benefits of the United States-PRC income tax treaty (which the U. S. Treasury Department has determined is satisfactory
for this purpose) and in that case we would be treated as a qualified foreign corporation with respect to dividends paid on our Class
A Ordinary Shares. Each non-corporate U. S. holder is advised to consult its tax advisors regarding the availability of the reduced tax
rate applicable to qualified dividend income for any dividends we pay with respect to our Class A Ordinary Shares. Dividends received
on the Class A Ordinary Shares will not be eligible for the dividends received deduction allowed to corporations.

Dividends will generally be
treated as income from foreign sources for United States foreign tax credit purposes and will generally constitute passive category income.
In the event that we are deemed to be a PRC “resident enterprise” under the Enterprise Income Tax Law, a U. S. holder may be
subject to PRC withholding taxes on dividends paid on our Class A Ordinary Shares. (See “-People’s Republic of China Taxation”).
In that case, 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 Class A Ordinary Shares. A U. S. holder who does not elect to claim a foreign
tax credit for foreign tax withheld may instead claim a deduction, for United States federal income tax purposes, in respect of such withholdings,
but