Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 58

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 58
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 passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S. investors.

In
general, we will be treated as a passive foreign investment company (“PFIC”) for any taxable year in which either (1) at
least 75% of our gross income (looking through certain 25% or more-owned corporate subsidiaries) is passive income or (2) at least 50%
of the average value of our assets (looking through certain 25% or more-owned corporate 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 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. Our actual PFIC status for our current taxable
year may depend on whether we qualify for the PFIC start-up exception. Our actual PFIC status for any taxable year, however, will not
be determinable until after the end of such taxable year (or after the end of the start-up period, if later). Accordingly, there can
be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. If we determine we
are a PFIC for any taxable year, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC
Annual Information Statement, in order to enable the U.S. Holder to make and maintain a “qualified electing fund” election,
but there can be no assurance that we will timely provide such required information. A U.S. Holder may also mitigate the adverse tax
consequences by timely making a mark-to-market election with respect to our ordinary shares. We urge U.S. Holders to consult their own
tax advisors regarding the possible application and consequences of the PFIC rules and the availability of such elections.

Our
initial business combination or transactions relating thereto may result in taxes imposed on us and our shareholders.

We
may, in connection with our initial business combination and subject to requisite shareholder approval by special resolution under the
Companies Act, merge or otherwise combine with another company, or transfer by way of continuation to the jurisdiction