Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 69

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 69
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 a foreign corporation (and, therefore, a
non-U.S. tax resident) for U.S. federal income tax purposes. Section 7874 provides an exception pursuant to which a foreign
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 require analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties
as to their application. If it were determined that we should be taxed as a U.S. corporation for U.S. federal income tax purposes
under section 7874, we would be subject to U.S. federal income tax on our taxable income like any other U.S. corporation and
certain distributions made by us to non-U.S. holders’ securities would be subject to U.S. withholding tax at the rate
of 30% or such lower rate as provided by an applicable treaty. Taxation as a U.S. corporation could also have a material adverse
effect on our financial position and results from operations.

As more fully described under “ — U.S. Federal Income Tax Treatment of PubCo,” our view is that section 7874 applies in a manner such that we should not be treated as a U.S. corporation for U.S. federal income tax purposes, based on our position that immediately after completion of the Business Combination, former shareholders of RFAC owned, by reason of owning (or being treated as owning) stock of RFAC, less than 80% of the voting power and value of our securities (the “Ownership Test”). Further, holders are cautioned that the application of section 7874 to us is extremely complex. Applicable Treasury Regulations under section 7874 are subject to significant uncertainty, and there is limited guidance regarding their application. Moreover, the application of section 7874 to the facts and circumstances of the Business Combination are uncertain.The Company has not sought any rulings
from the IRS with respect to the statements made and the positions or conclusions described in this summary. The IRS may not agree with our position that we should be treated as a non-U.S. corporation for U.S. federal income tax purposes, and there can be no assurance that, if challenged, such treatment will be sustained by a court. The remainder of this prospectus assumes that PubCo will not be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code.

We may be or become a passive foreign investment company (“PF