Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 189

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 189
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 a U. S. Holder has made
a QEF election with respect to our Ordinary Shares, and the special tax and interest charge rules do not apply to such shares (because
of a timely QEF election for our first taxable year as a PFIC in which the U. S. Holder holds (or is deemed to hold) such shares), any
gain recognized on the appreciation of our Ordinary Shares generally will be taxable as capital gain and no interest charge will be imposed.
As discussed above, U. S. Holders of a QEF are currently taxed on their pro rata shares of a PFIC’s earnings and profits, whether
or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included in income generally
should not be taxable as a dividend to those U. S. Holders who made a QEF election. The tax basis of a U. S. Holder’s shares in a
QEF will be increased by amounts that are included in income, and decreased by amounts distributed but not taxed as dividends, under the
above rules. Similar basis adjustments apply to property if by reason of holding such property the U. S. Holder is treated under the applicable
attribution rules as owning shares in a QEF.

Although a determination as
to our PFIC status will be made annually, an initial determination that our company is a PFIC will generally apply for subsequent years
to a U. S. Holder who held Ordinary Shares while we were a PFIC, whether or not we meet the test for PFIC status in those years. A U. S.
Holder who makes the QEF election discussed above for our first taxable year as a PFIC in which the U. S. Holder holds (or is deemed to
hold) our Ordinary Shares, however, will not be subject to the PFIC tax and interest charge rules discussed above in respect to such shares.
In addition, such U. S. Holder will not be subject to the QEF inclusion regime with respect to such shares for any taxable year of ours
that ends within or with a taxable year of the U. S. Holder and in which we are not a PFIC. On the other hand, if the QEF election is not
effective for each of our taxable years in which we are a PFIC and the U. S. Holder holds (or is deemed to hold) our Ordinary Shares, the
PFIC rules discussed above will continue to apply to such shares unless the holder makes a pur