Company: WCT
Filing Date: 2025-12-02
Form Type: F-1
Source: 0001213900-25-116978
Chunk: 119

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-12-02
Form: F-1
Chunk 119
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 U.S. Holder did not make either a timely
qualified electing fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our Class
A Ordinary Shares, or a mark-to-market election and ownership of those Class A Ordinary Shares are inherited, a special provision
in IRC Section 1291(e) provides that the new U.S. Holder’s basis should be reduced by an amount equal to the IRC
Section 1014 basis minus the decedent’s adjusted basis just before death. As such if we are determined to be a PFIC at any
time prior to a decedent’s passing, the PFIC rules will cause any new U.S. Holder that inherits our Class A Ordinary Shares
from a U.S. Holder to not get a step-up in basis under IRC Section 1014 and instead will receive a carryover basis in those
Class A Ordinary Shares.

You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our Class A Ordinary Shares and the elections discussed above.

Cayman Islands Taxation

The Cayman Islands currently levies no taxes on
individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax
or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties
which may be applicable on instruments executed in, or after execution brought within the jurisdiction of the Cayman Islands. The Cayman
Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control
regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of
the shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital
to any holder of our Class A Ordinary Shares, nor will gains derived from the disposal of our Class A Ordinary Shares be subject to Cayman
Islands income or corporation tax.

BVI taxation

A BVI business company is exempt from all provisions
of the Income Tax Ordinance of the BVI (including with respect to all dividends, interests, rents, royalties, compensations and other
amounts payable by the company to persons who are not resident in the BVI). Capital gains realized with respect to any shares, debt obligations
or