Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 105

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 10
Chunk 105
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 person who receives our shares pursuant to the exercise of employee stock options or otherwise as compensation.

U. S. Holders

For purposes of the discussion below, you are a “ U. S. Holder” if you are a beneficial owner of our common shares who or which is:

•an individual United States citizen or resident alien of the United States (as specifically defined for United States federal income tax purposes);

•a corporation, or other entity treated as a corporation for United States federal income tax purposes, created or organized in or under the laws of the United States, any State or the District of Columbia;

•an estate whose income is subject to United States federal income tax regardless of its source; or

•a trust (x) if a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust or (y) if it was in existence on August20, 1996, was treated as a United States person prior to that date and has a valid election in effect under applicable Treasury regulations to be treated as a United States person.

If a partnership, or other entity treated as a partnership for United States federal income tax purposes holds our common shares, the tax treatment of a partner will generally depend upon the status of the partner and upon the activities of the partnership. If you are a partner of a partnership holding our common shares, you should consult your tax advisor.

Passive Foreign Investment Company (PFIC)

A U. S. Holder generally will be subject to a special tax regime if we are a PFIC at any time during which such Holder has held our shares.

A Non-U. S. corporation will be treated as a PFIC for United States federal income tax purposes if, after applying relevant look-throughrules with respect to the income and assets of its subsidiaries, 75% or more of its gross income consists of certain types of passive income (the “income test”) or 50% or more of the gross value of its assets (based on an average of the quarterly values of the assets during such year) is attributable to assets that produce passive income or are held for the production of passive income (the “asset test”). For this purpose, passive income generally includes dividends, interest, royalties, rents (other than rents and royalties derived in the active conduct of a trade or business and not derived from a related person), annuities and gains from assets that produce passive income. An actual determination of PFIC status is factual in nature and