Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 155

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 155
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 as dividends for U. S. federal income tax purposes.

In the event that we are deemed to be a PRC resident
enterprise under the PRC Enterprise Income Tax Law (see “ - People’s Republic of China Taxation”), a U. S. Holder
may be subject to PRC withholding taxes on dividends paid on our ADSs or Class A ordinary shares. In that case, we may, however, be eligible
for the benefits of 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 “ Treaty.”
Dividend distributions with respect to our Class A ordinary shares or ADSs generally will be treated as “passive category”
income from sources outside the United States for purposes of determining a U. S. Holder’s U. S. foreign tax credit limitation. Subject
to generally applicable limitations and conditions, a U. S. Holder may be able to claim a foreign tax credit against its U. S. federal income
tax liability in respect of any PRC income taxes withheld at the appropriate rate applicable to the U. S. Holder from a dividend paid to
such U. S. Holder. These generally applicable limitations and conditions include new requirements adopted by the U. S. Internal Revenue
Service (“ IRS”) in regulations promulgated in December 2021 and any PRC tax will need to satisfy these requirements in order
to be eligible to be a creditable tax for a U. S. Holder. In the case of a U. S. Holder that either (i) is eligible for, and properly elects,
the benefits of the Treaty, or (ii) consistently elects to apply a modified version of these rules under recently issued temporary guidance
and complies with specific requirements set forth in such guidance, the PRC tax on dividends will be treated as meeting the new requirements
and therefore as a creditable tax. In the case of all other U. S. Holders, the application of these requirements to the PRC tax on dividends
is uncertain and we have not determined whether these requirements have been met. If the PRC dividend tax is not a creditable tax for
a U. S. Holder or the U. S. Holder does not elect to claim a foreign tax credit for any foreign income taxes paid or accrued in the same
taxable year, the U. S. Holder may be able to