Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 145

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 10
Chunk 145
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 PFIC may make a “qualified electing fund” election with respect to such PFIC to elect out
of the tax treatment discussed above. A U. S. Holder who makes a valid qualified electing fund election with respect to a PFIC will
generally include in gross income for a taxable year such holder’s pro rata share of the corporation’s earnings and profits
for the taxable year. However, the qualified electing fund election is available only if such PFIC provides such U. S. Holder with
certain information regarding its earnings and profits as required under applicable U. S. Treasury regulations. We do not currently
intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold Class A Ordinary
Shares in any year in which we are a PFIC, you will be required to file U. S. Internal Revenue Service Form 8621 regarding distributions
received on the Class A Ordinary Shares and any gain realized on the disposition of the Class A Ordinary Shares.

If
you do not make a timely “mark-to-market” election (as described above), and if we were a PFIC at any time during the period
you hold our Ordinary Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we
cease to be a PFIC in a future year, unless you make a “purging election” for the year we cease to be a PFIC. A “purging
election” creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which
we are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules
treating the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal
to the fair market value of the Class A Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and
holding period (which new holding period will begin the day after such last day) in your Class A Ordinary Shares for tax purposes.

IRC
Section 1014(a) provides for a step-up in basis to the fair market value for our Class A Ordinary Shares when inherited
from a decedent that was previously a holder of our Class A Ordinary Shares. However, if we are determined to be a PFIC and a dec