Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 96

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 96
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 the ADSs or ordinary shares will generally be treated as income from foreign sources 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, if any, on the ADSs or 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 ADSs or 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 withholding, but only for a year in which such holder elects
to do so for all creditable foreign income taxes. The rules governing the foreign tax credit are complex. U.S. Holders are urged
to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

Sale or other disposition of ADSs or ordinary shares

Subject to the PFIC rules discussed below,
a U.S. Holder will generally recognize capital gain or loss, if any, upon the sale or other disposition of ADSs or ordinary shares in
an amount equal to the difference between the amount realized upon the disposition and the holder’s adjusted tax basis in such ADSs
or ordinary shares. Any capital gain or loss will be long-term capital gain or loss if the ADSs or ordinary shares have been held for
more than one year and will generally be United States source gain or loss for United States foreign tax credit purposes. Long-term capital
gains of non-corporate U.S. Holders are currently eligible for reduced rates of taxation. In the event that we are treated as a PRC resident
enterprise under the EIT Law, and gain from the disposition of the ADSs or ordinary shares is subject to tax in the PRC (see “—PRC
Taxation”), such gain may be treated as PRC source gain for foreign tax credit purposes under the United States-PRC income tax treaty.
The deductibility of a capital loss may be subject to limitations. U.S. Holders are urged to consult their tax advisors regarding the
tax consequences if a foreign tax is imposed on a disposition of the ADSs or ordinary shares, including the availability of the foreign
tax credit under their particular circumstances.

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