Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 160

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 160
---
 exchange control regulations
in the Cayman Islands applicable to us or our shareholders.

The tax consequences
that would apply if we are a PFIC would also be different from those described above if a U. S. Holder were able to make a valid qualified
electing fund (“ QEF”) election. As we do not expect to provide U. S. Holders with the information necessary for a U. S. Holder
to make a QEF election, prospective investors should assume that a QEF election will not be available.

The U. S. federal income
tax rules relating to PFICs are very complex. Prospective U. S. investors are strongly urged to consult their own tax advisors with respect
to the impact of PFIC status on the purchase, ownership, and disposition of our Ordinary Shares, the consequences to them of an investment
in a PFIC, any elections available with respect to the Ordinary Shares, and the IRS information reporting obligations with respect to
the purchase, ownership, and disposition of Ordinary Shares of a PFIC.

Distributions

Subject to the discussion
above under “ PFIC Consequences,” a U. S. Holder that receives a distribution with respect to our Ordinary Shares generally
will be required to include the gross amount of such distribution in gross income as a dividend when actually or constructively received
to the extent of the U. S. Holder’s pro rata share of our current and/or accumulated earnings and profits (as determined under U. S.
federal income tax principles). To the extent a distribution received by a U. S. Holder is not a dividend because it exceeds the U. S.
Holder’s pro rata share of our current and accumulated earnings and profits, it will be treated first as a tax-free return of capital
and reduce (but not below zero) the adjusted tax basis of the U. S. Holder’s Ordinary Shares. To the extent the distribution exceeds
the adjusted tax basis of the U. S. Holder’s Ordinary Shares, the remainder will be taxed as capital gain. Because we may not account
for our earnings and profits in accordance with U. S. federal income tax principles, U. S. Holders should expect all distributions to be
reported to them as dividends.

  96  

  Table of Contents  

Distributions on
our Ordinary Shares that are treated as dividends generally will constitute income from sources outside the United States for foreign
tax credit purposes and generally will constitute passive category income. Such dividends will not be eligible for the “