Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 72

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 72
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 resident in the jurisdiction of its organization and incorporation. Accordingly,
under generally applicable U.S. federal income tax rules, PubCo, which is incorporated under the laws of the Cayman Islands, would be
classified as a non-U.S. corporation (and, therefore, not a U.S. tax resident) for U.S. federal income tax purposes. Section 7874 of
the Code provides an exception to this general rule (more fully discussed below), under which a non-U.S. incorporated entity may, in
certain circumstances, be treated as a U.S. corporation for U.S. federal income tax purposes. These rules are complex and there is limited
guidance regarding their application.

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Under Section 7874 of the
Code, a corporation created or organized outside the United States (i.e., a non-U.S. corporation) will nevertheless be treated as a U.S.
corporation for U.S. federal income tax purposes (and, therefore, as a U.S. tax resident subject to U.S. federal income tax on its worldwide
income) if each of the following three conditions are met: (i) the non-U.S. corporation, directly or indirectly, acquires substantially
all of the properties held directly or indirectly by a U.S. corporation (including through the acquisition of all of the outstanding
shares of the U.S. corporation); (ii) the non-U.S. corporation’s “expanded affiliate group” does not have “substantial
business activities” in the non-U.S. corporation’s country of organization or incorporation and (iii) after the acquisition,
the former shareholders of the acquired U.S. corporation hold at least 80% (by either vote or value) of the shares of the non-U.S. acquiring
corporation by reason of holding shares in the U.S. acquired corporation (taking into account the receipt of the non-U.S. corporation’s
shares in exchange for the U.S. corporation’s shares) as determined for purposes of Section 7874 (this test is referred to as the
“ownership test”). The ownership test in clause (iii) above is modified with respect to potential “third-country transactions”
such that the ownership test will be met if, after the acquisition, the former shareholders of the acquired U.S. corporation hold at
least 60% (by either vote or value) of the shares of the non-U.S. acquiring corporation by reason of holding shares in the U.S. acquired