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IQIYI, INC. filed this Form 424B4 on 03/29/2018
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U.S. Federal Income Tax Considerations

The following discussion is a summary of U.S. federal income tax considerations under present law of the ownership and disposition of the ADSs or ordinary shares. This summary applies only to investors that are U.S. Holders (as defined below) and that hold the ADSs or ordinary shares as capital assets. This discussion is based on the applicable provisions of the U.S. Internal Revenue Code of 1986, as amended, final, temporary and proposed Treasury regulations thereunder, pertinent judicial decisions, interpretive rulings of the IRS and such other authorities as we have considered relevant. All of the foregoing authorities are subject to change, which change could apply retroactively and could affect the tax considerations described below.

The following discussion does not deal with all the tax considerations to any particular investor or to persons in special tax situations such as:




    financial institutions;


    insurance companies;


    broker dealers;


    persons that elect to mark their securities to market;


    tax-exempt entities;


    persons liable for the alternative minimum tax;


    regulated investment companies;


    certain expatriates or former long-term residents of the United States;


    governments or agencies or instrumentalities thereof;


    persons holding an ADS or ordinary share as part of a straddle, hedging, conversion or integrated transaction;


    persons that actually or constructively own ADSs or ordinary shares representing 10% or more of our voting power or value;


    persons whose functional currency is other than the U.S. dollar; or


    persons who acquired ADSs or ordinary shares pursuant to the exercise of any employee share option or otherwise as consideration.

U.S. Holders are urged to consult their tax advisors about the application of the U.S. federal tax rules to their particular circumstances as well as the state, local and foreign tax consequences to them of the ownership and disposition of ADSs or ordinary shares.

The discussion below of the U.S. federal income tax considerations will apply if you are a “U.S. Holder.” You are a “U.S. Holder” if you are the beneficial owner of ADSs or Class A ordinary shares and you are, for U.S. federal income tax purposes:


    an individual citizen or resident of the United States;


    a corporation (or other entity subject to tax as a corporation for U.S. federal income tax purposes) that is 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 U.S. federal income taxation regardless of its source; or


    a trust that (i) is subject to the supervision of a court within the United States and the control of one or more U.S. persons or (ii) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.