Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 209

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 209
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 our taxable year in which the dividend is paid or the preceding
taxable year, and (3) certain holding period requirements are met. Because there is not income tax treaty between the United States and
the British Virgin Islands, clause (1) above can be satisfied only if the Ordinary Shares are readily tradable on an established securities
market in the United States. Under U. S. Internal Revenue Service authority, Ordinary Shares are considered for purpose of clause (1)
above to be readily tradable on an established securities market in the United States if they are listed on certain exchanges, which
presently include the Nasdaq Stock Market. You are urged to consult your tax advisors regarding the availability of the lower rate for
dividends paid with respect to our Ordinary Shares, including the effects of any change in law after the date of this report.

Dividends
will constitute foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income
(as discussed above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will
be limited to the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable
to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income.
For this purpose, dividends distributed by us with respect to our Ordinary Shares will constitute “passive category income”
but could, in the case of certain U. S. Holders, constitute “general category income.”

To
the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U. S. federal
income tax principles), it will be treated first as a tax-free return of your tax basis in your Ordinary Shares, and to the extent the
amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under U. S. federal income tax principles. Therefore, a U. S. Holder should expect 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.