Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 101

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 10
Chunk 101
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 that a distribution will be treated as a dividend even if that distribution would otherwise
be treated as a non-taxable return of capital or as capital gain under the rules described above.

Taxation of Dispositions of Ordinary Shares

Subject to the passive foreign investment company
rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of a share equal to
the difference between the amount realized (in U. S. dollars) for the share and your tax basis (in U. S. dollars) in the ordinary shares.
The gain or loss will be capital gain or loss. If you are a non-corporate U. S. Holder, including an individual U. S. Holder, who has held
the ordinary shares for more than one year, you may be eligible for reduced tax rates on any such capital gains. The deductibility of
capital losses is subject to limitations.

Passive Foreign Investment Company

A non-U. S. corporation is considered a PFIC for
any taxable year if either:

  at least 75% of its gross income for such taxable year is passive income; or                                                                                                                          
  at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production o...  

Passive income generally includes dividends, interest,
rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition
of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income
of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition
of our assets for purposes of the PFIC asset test, (1) the cash we raise in our initial public offering will generally be considered
to be held for the production of passive income and (2) the value of our assets must be determined based on the market value of our
ordinary shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our
assets (including the cash raised in our initial public offering) on any particular quarterly testing date for purposes of the asset test.

We must make a separate determination each year
as to whether we are a PFIC. Depending on the amount