Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 156

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 156
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 its own tax advisor regarding the U. S. federal income tax consequences applicable to it and its partners of
the purchase, ownership, and disposition of our Ordinary Shares.

Persons considering
an investment in our Ordinary Shares should consult their own tax advisors as to the particular tax consequences applicable to them relating
to the purchase, ownership, and disposition of our Ordinary Shares, including the applicability of U. S. federal, state, and local tax
laws and non-U. S. tax laws.

Passive Foreign Investment Company
(“ PFIC”) Consequences

In general, a corporation
organized outside the United States will be treated as a PFIC for any taxable year in which either (i) at least 75% of its gross income
is “passive income” (“ PFIC income test”), or (ii) on average at least 50% of its assets, determined on a quarterly
basis, are assets that produce passive income or are held for the production of passive income (“ PFIC asset test”). Passive
income for this purpose generally includes, among other things, dividends, interest, royalties, rents, and gains from the sale or exchange
of property that gives rise to passive income. Assets that produce or are held for the production of passive income generally include
cash (even if held as working capital or raised in a public offering), marketable securities, and other assets that may produce passive
income. Generally, in determining whether a non-U. S. corporation is a PFIC, a proportionate share of the income and assets of each corporation
in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.

Although PFIC status
is determined on an annual basis and generally cannot be determined until the end of a taxable year, based on the nature of our current
and expected income and the current and expected value and composition of our assets, we do not presently expect to be a PFIC for our
current taxable year or the foreseeable future. However, there can be no assurance given in this regard because the determination of
whether we are or will become a PFIC is a fact-intensive inquiry made on an annual basis that depends, in part, upon the composition
of our income and assets. In addition, there can be no assurance that the IRS will agree with our conclusion or that the IRS would not
successfully challenge our position.

If we are a PFIC in
any taxable year during which a U. S. Holder owns our