Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 140

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 10
Chunk 140
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” income or (ii) 50% or more of the average quarterly value of its
assets (as determined on the basis of fair market value) during such year produce or are held for the production of passive income. For
this purpose, cash is categorized as a passive asset and the company’s unbooked intangibles associated with active business activities
may generally be classified as active assets. Passive income generally includes, among other things, dividends, interest, rents, royalties,
and gains from the disposition of passive assets. We will be treated as owning a proportionate share of the assets and earning a proportionate
share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock.

The
discussion below under “ Dividends” and “ Sale or Other Disposition of Ordinary Shares” is written on the basis
that we will not be or become a PFIC for United States federal income tax purposes. The United States federal income tax rules
that apply if we are a PFIC for the current taxable year or any subsequent taxable year are generally discussed below under “ Passive
Foreign Investment Company Rules.”

Dividends

Subject
to the PFIC rules discussed below, any cash distributions (including the amount of any tax withheld) paid on our Class A Ordinary Shares
out of our current or accumulated earnings and profits, as determined under United States federal income tax principles, will generally
be includible in the gross income of a U. S. holder as dividend income on the day actually or constructively received by the
U. S. holder. Because we do not intend to determine our earnings and profits on the basis of United States federal income tax
principles, any distribution paid will generally be reported as a “dividend” for United States federal income tax purposes.
A non-corporate recipient of dividend income will generally be subject to tax on dividend income from a “qualified foreign
corporation” at a reduced United States federal tax rate rather than the marginal tax rates generally applicable to ordinary
income provided that certain holding period requirements are met.

A
non-United States corporation (other than a corporation that is a PFIC for the taxable year in which the dividend is paid or the
preceding taxable year) will generally be considered to be a qualified foreign corporation (a) if it is eligible for the benefits
of a comprehensive tax treaty with the United States which the Secretary of Treasury of the United States determines is satisfactory