Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 67

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 10
Chunk 67
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As an alternative to
the foregoing rules, a U. S. Holder of “marketable stock” (as defined below) in a PFIC may make a mark-to- market election
with respect to such stock. If a U. S. Holder makes this election with respect to our Ordinary Shares, the holder will generally(i) include
as ordinary income for each taxable year that we are a PFIC the excess, if any, of the fair market value of Ordinary Shares held at the
end of the taxable year over the adjusted tax basis of such Ordinary Shares and (ii) deduct as an ordinary loss the excess, if any, of
the adjusted tax basis of the Ordinary Shares over the fair market value of such Ordinary Shares held at the end of the taxable year,
but such deduction will only be allowed to the extent of the net amount previously included in income as a result of the mark-to-market
election. The U. S. Holder’s adjusted tax basis in the Ordinary Shares would be adjusted to reflect any income or loss resulting
from the mark-to-market election. If a U. S. Holder makes a mark-to- market election in respect of our Ordinary Shares and we cease to
be classified as a PFIC, the holder will not be required to take into account the gain or loss described above during any period that
we are not classified as a PFIC. If a U. S. Holder makes a mark-to-market election, any gain such U. S. Holder recognizes upon the sale
or other disposition of our Ordinary Shares in a year when we are a PFIC will be treated as ordinary income and any loss will be treated
as ordinary loss, but such loss will only be treated as ordinary loss to the extent of the net amount previously included in income as
a result of the mark-to-market election.

The mark-to-market election
is available only for “marketable stock,” which is stock that is traded in other than de minimis quantities on at least 15
days during each calendar quarter, or regularly traded, on a qualified exchange or other market, as defined in applicable United States
Treasury regulations. Our Ordinary Shares will be treated as marketable stock upon their listing on Nasdaq Capital Market. We anticipate
that our Ordinary Shares should qualify as being regularly traded, but no assurances may be given in this regard.

Because a mark-to-market
election cannot technically be made for any lower-tier PFICs that we may own, a U. S.