Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 182

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 182
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PRC income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares. However, under Circular
7, where a non-resident enterprise conducts an “indirect transfer” by transferring taxable assets, including, in particular,
equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident
enterprise, being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant
tax authority such indirect transfer. Using a “substance over form” principle, the PRC tax authority may disregard the existence
of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding
or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee
would be obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident
enterprise. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under Circular 7,
and we may be required to expend valuable resources to comply with Bulletin 37, or to establish that we should not be taxed under Circular
7 and Bulletin 37.

Prospective investors should
consult with their own tax advisors regarding the applicability of any such taxes, the effects of any applicable income tax treaties,
and any available foreign tax credits.

Material U. S. Tax Considerations

The following is a summary
of the material U. S. federal income tax consequences of owning and disposing of our Ordinary Shares. The discussion below of the U. S.
federal income tax consequences to “ U. S. Holders” will apply to a beneficial owner of our shares that is for U. S. federal
income tax purposes:

  an individual citizen or resident of the United States;                                                                                                                                               
  a corporation (or other entity treated as a corporation) that is created or organized (or treated as created or organized) in or under the laws of the United States, any state thereof or the Di...  
  an estate whose income is includible in gross income for U. S. federal income tax purposes regardless of its source; or                                                                               
  a trust if (i) a U. S. court can exercise primary supervision over the trust’s administration and one or more U