Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 185

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 185
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 and profits generally will
be applied against and reduce the U. S. Holder’s basis in its Ordinary Shares and, to the extent in excess of such basis, will be
treated as gain from the sale or exchange of such Ordinary Shares. With respect to corporate U. S. Holders, dividends on our shares will
not be eligible for the dividends-received deduction generally allowed to domestic corporations in respect of dividends received from
other domestic corporations.

With respect to non-corporate
U. S. Holders, including individual U. S. Holders, dividends on our shares will be taxed at the lower long-term capital gains rate applicable
to qualified dividend income (see “ - Taxation on the Disposition of Ordinary Shares” below), provided that (1) our Ordinary
Shares are readily tradable on an established securities market in the United States or, in the event we are deemed to be a Chinese “resident
enterprise” under the EIT Law, we are 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 “ U. S.-PRC Tax Treaty”; (2) we are not a PFIC, as discussed below, for either the taxable
year in which the dividend was paid or the preceding taxable year; and (3) certain holding period requirements are met. Under published
IRS authority, shares are considered for purposes of clause (1) above to be readily tradable on an established securities market in the
United States only if they are listed on certain exchanges, which presently include the Nasdaq Stock Market. U. S. Holders should consult
their own tax advisors regarding the tax treatment of any dividends paid with respect to our Ordinary Shares, including the effects of
any change in law after the date of this Annual Report.

If PRC taxes apply to dividends
paid to a U. S. Holder on our Ordinary Shares, such U. S. Holder may be entitled to a reduced rate of PRC tax under the U. S-PRC Tax Treaty.
In addition, such PRC taxes may be treated as foreign taxes eligible for credit against such holder’s U. S. federal income tax liability
(subject to certain limitations). U. S. Holders should consult their own tax advisors regarding the creditability of any such PRC tax and
their eligibility for the benefits