Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 110

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 10
Chunk 110
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 are under no obligation to take steps to reduce the risk of our being classified as a PFIC,
and as stated above, the value of our assets will depend upon material facts (including the market price of our Ordinary Shares from
time to time and the amount of cash we raise in the IPO) that may not be within our control. If we are a PFIC for any year during which
you hold Ordinary Shares, we will continue to be treated as a PFIC for all succeeding years during which you hold Ordinary Shares. If
we cease to be a PFIC and you did not previously make a timely “mark-to-market” election as described below, however, you
may avoid some of the adverse effects of the PFIC regime by making a “purging election” (as described below) with respect
to the Ordinary Shares.

If
we are a PFIC for your taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to
any “excess distribution” that you receive and any gain you realize from a sale or other disposition (including a pledge)
of the Ordinary Shares, unless you make a “mark-to-market” election as discussed below. Distributions you receive in a taxable
year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years
or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

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  71  

The
tax liability for amounts allocated to years prior to the year of disposition or “excess distribution” cannot be offset by
any net operating losses for such years, and gains (but not losses) realized on the sale of the Ordinary Shares s cannot be treated as
capital, even if you hold the Ordinary Shares as capital assets. A U. S. Holder of “marketable stock” (as defined below) in
a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect out of the tax treatment
discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to hold) Ordinary Shares
and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess, if any, of the
fair market value of the Ordinary Shares as of the close of such