LDK Solar Co., Ltd. - Asia Europe Clean Energy (Solar) Advisory Co ...

Your basis in the ordinary shares or ADSs will be adjusted to reflect any such income or loss amounts. The tax
rules that apply to distributions by corporations which are not PFICs would apply to distributions by us.
The mark-to-market election is available only for ""marketable stock,'' which is any stock that is regularly
traded in other than de minimis quantities on at least 15 days during each calendar quarter on a qualified
exchange, including the New York Stock Exchange, or other market, as defined in applicable U.S. Treasury
regulations. We expect that our ADSs will be listed and regularly traded on the New York Stock Exchange
and, consequently, the mark-to-market election would be available to you with respect to the ADSs were we to
be or become a PFIC.
Alternatively, if we are a PFIC, you may avoid taxation under the rules described above by making a
""qualified electing fund'' election to include your share of our income on a current basis, or a ""deemed sale''
election once we no longer qualify as a PFIC. However, you may make a qualified electing fund election only
if we agree to furnish you annually with certain tax information, and we do not presently intend to prepare or
provide such information.
Non-corporate U.S. Holders will not be eligible for reduced rates of taxation on any dividends received
from us prior to January 1, 2011, if we are a PFIC in the taxable year in which such dividends are paid or in
the preceding taxable year.
If you hold our ordinary shares or ADSs in any year in which we are a PFIC, you would be required to file
Internal Revenue Service Form 8621 regarding distributions received on the ordinary shares or ADSs and any
gain realized on the disposition of the ordinary shares or ADSs.
You are urged to consult your tax advisor regarding the application of the PFIC rules to your investment
in our ordinary shares or ADSs.
Non-U.S. Holders
If you are a Non-U.S. Holder, you generally will not be subject to United States federal income tax on
dividends paid by us unless the income is effectively connected with your conduct of a trade or business in the
United States.
You generally will not be subject to United States federal income tax on any gain attributable to a sale or
other disposition of the ordinary shares or ADSs unless such gain is effectively connected with your conduct of
a trade or business within the United States or you are a natural person who is present in the United States for
183 days or more and certain other conditions exist.
Dividends and gains that are effectively connected with your conduct of a trade or business in the
United States generally will be subject to tax in the same manner as they would be if you were a U.S. Holder.
Effectively connected dividends and gains received by a corporate Non-U.S. Holder may also be subject to an
additional branch profits tax at a 30% rate or a lower tax treaty rate.
Information Reporting and Backup Withholding
In general, information reporting for United States federal income tax purposes will apply to distributions
made on the ordinary shares or ADSs paid within the United States to a non-corporate United States person
and on sales or other dispositions of the ordinary shares or ADSs to or through a United States office of a
broker by a non-corporate United States person. Payments made outside the United States will be subject to
information reporting in limited circumstances.
In addition, backup withholding of United States federal income tax at a rate of 28% will apply to
distributions made on ordinary shares or ADSs within the United States to a non-corporate United States
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