Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 163

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 163
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 year, other than a pre-PFIC year, will be subject  
 to tax at the highest tax rate in effect for individuals or corporations, as appropriate, 
 for that year, increased by an additional tax equal to the interest on the resulting tax  
 deemed deferred with respect to each such taxable year.                                   |

If we are a PFIC for any taxable year during which a U.S. Holder holds the Ordinary Shares, and any of our subsidiaries is also a PFIC (a “lower-tier PFIC”), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application of these rules. U.S. Holders are urged to consult their tax advisors regarding the application of the PFIC rules to any of our subsidiaries.

U.S. Holder that holds stock
in a non-U.S. corporation during any taxable year in which the corporation is treated as a PFIC is subject to special tax rules with
respect to (a) any gain realized on the sale, exchange or other disposition of the stock and (b) any “excess distribution”
by the corporation to the holder, unless the holder elects to treat the PFIC as a “qualified electing fund” (“QEF”)
or makes a “mark-to-market” election, each as discussed below. An “excess distribution” is that portion of a
distribution with respect to PFIC stock that exceeds 125% of the average of such distributions over the preceding three-year period or,
if shorter, the U.S. Holder’s holding period for its Ordinary Shares. Excess distributions and gains on the sale, exchange or other
disposition of stock of a corporation which was a PFIC at any time during the U.S. Holder’s holding period are allocated ratably
to each day of the U.S. Holder’s holding period. Amounts allocated to the taxable year in which the disposition occurs and amounts
allocated to any period in the shareholder’s holding period before the first day of the first taxable year that the corporation
was a PFIC will be taxed as ordinary income (rather than capital gain) earned in the taxable year of the disposition. Amounts allocated
to each of the other taxable years in the U.S. Holder’s holding period are not included in gross income for the year of the disposition,
but are subject to a tax (equal to the highest ordinary income tax rates in effect for those years, and increased by an interest charge
at the