Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 167

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 10
Chunk 167
---
 it pays on
Ordinary Shares that are readily tradable on an established securities market in the United States.

Sale,
Exchange or Other Disposition of Our Ordinary Shares

Subject
to the discussion above under “ PFIC Consequences,” a U. S. Holder generally will recognize capital gain or loss for U. S. federal
income tax purposes upon the sale, exchange, or other disposition of our Ordinary Shares in an amount equal to the difference, if any,
between the amount realized (i. e., the amount of cash plus the fair market value of any property received) on the sale, exchange, or
other disposition and such U. S. Holder’s adjusted tax basis in the Ordinary Shares. Such capital gain or loss generally will
be long-term capital gain taxable at a reduced rate for non-corporate U. S. Holders or long-term capital loss if, on the date of
sale, exchange, or other disposition, the Ordinary Shares were held by the U. S. Holder for more than one year. Any capital gain
of a non-corporate U. S. Holder that is not long-term capital gain is taxed at ordinary income rates. The deductibility of capital
losses is subject to limitations. Any gain or loss recognized from the sale or other disposition of our Ordinary Shares will generally
be gain or loss from sources within the United States for U. S. foreign tax credit purposes.

Medicare
Tax

Certain
U. S. Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally are subject to a 3.8%
tax on all or a portion of their net investment income, which may include their gross dividend income and net gains from the disposition
of our Ordinary Shares. If you are a U. S. person that is an individual, estate or trust, you are encouraged to consult your tax
advisor regarding the applicability of this Medicare tax to your income and gains in respect to your investment in our Ordinary Shares.

Information
Reporting and Backup Withholding

U. S. Holders
may be required to file certain U. S. information reporting returns with the IRS with respect to an investment in our Ordinary Shares,
including, among others, IRS Form 8938 (Statement of Specified Foreign Financial Assets). As described above under “ PFIC Consequences,”
each U. S. Holder who is a shareholder of a PFIC must file an annual report containing certain information. U. S. Holders paying
more than US