Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 114

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 10
Chunk 114
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position of its Ordinary Shares and (ii) any “excess distribution” made to the U. S. Holder (generally, any distributions
to such U. S. Holder during a taxable year of the U. S. Holder that are greater than 125% of the average annual distributions received
by such U. S. Holder in respect of the Ordinary Shares during the three preceding taxable years of such U. S. Holder or, if shorter, such
U. S. Holder’s holding period for the Ordinary Shares).

Under
these rules:

  the U. S. Holder’s                                                                                                                            
  the amount allocated to                                                                                                                       
  the amount allocated to                                                                                                                       
  an additional tax equal                                                                                                                       

PFIC
elections

In
general, if we are determined to be a PFIC, a U. S. Holder may avoid the adverse PFIC tax consequences described above in respect of the
Ordinary Shares by making and maintaining a timely and valid qualified electing fund (“ QEF”) election (if eligible to do
so) to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary
income), on a current basis, in each case whether or not distributed, in the taxable year of the U. S. Holder in which or with which our
taxable year ends. A U. S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions
under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

The
QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U. S. Holder
generally makes a QEF election by attaching a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment
Company or Qualified Electing Fund), including the information provided in a PFIC Annual Information Statement, to a timely filed U. S.
federal income tax return for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing
a protective statement with such return and if certain other conditions are met or with the consent of the IRS. U. S. Holders should consult
their tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

In
order to comply with the requirements of