Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 70

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 70
---
IC”), which could result in adverse U.S. federal income tax consequences to U.S. Holders of our Ordinary Shares.

In
general, we will be treated as a PFIC for any taxable year in which either (1) at least 75% of our gross income (looking through certain
25% or more-owned subsidiaries) is passive income or (2) at least 50% of the average value of our assets (looking through certain 25%
or more-owned subsidiaries) is attributable to assets that produce, or are held for the production of, passive income. Passive income
generally includes, without limitation, dividends, interest, rents, royalties, and gains from the disposition of passive assets. If we
are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder (as defined
in the Section of this prospectus captioned “Material U.S. Federal Income Tax Considerations”) of our securities, the
U.S. Holder may be subject to increased U.S. federal income tax liability and may be subject to additional reporting requirements. The
determination of whether we are a PFIC is a fact-intensive determination made on an annual basis applying principles and methodologies
that in some circumstances are unclear and subject to varying interpretation. Our actual PFIC status for any taxable year will not be
determinable until after the end of such taxable year. Accordingly, there can be no assurance with respect to our status as a PFIC for
our current taxable year or any subsequent taxable year. We urge U.S. Holders to consult their own tax advisors regarding the possible
application of the PFIC rules in light of their individual circumstances.

<div align='center'>35</div>

Changes to, or changes in interpretations of, tax laws could have a material adverse effect on our business, financial condition and results of operations.

We
are subject to income taxes and non-income taxes in the United States and other countries in which we transact or conduct business,
and such laws and rates vary by jurisdiction. Tax laws and regulations, including at non-U.S. and U.S. federal and local jurisdictions,
frequently change, especially in relation to the interpretation of existing tax laws for new and emerging industries, and we cannot always
reasonably predict the impact from, or the ultimate cost of compliance with, current or future tax laws.

Any
changes in the taxation of our business activities may increase our worldwide effective tax rate and harm our business