Company: GVH
Filing Date: 2025-04-15
Form Type: DRS
Source: 0001641172-25-004806
Chunk: 98

Company: Globavend Holdings Ltd
Filing Date: 2025-04-15
Form: DRS
Chunk 98
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 annual distributions paid in the three preceding taxable years, or, if shorter, the U.S. Holder’s holding period for our
Ordinary Shares; and (ii) any gain recognized on a sale, exchange, or other disposition, including a pledge, of our Ordinary Shares, whether
or not we continue to be a PFIC. Under the PFIC excess distribution regime, the tax on such distribution or gain would be determined by
allocating the distribution or gain ratably over the U.S. Holder’s holding period for our Ordinary Shares. The amount allocated
to the current taxable year (i.e., the year in which the distribution occurs or the gain is recognized) and any year prior to the first
taxable year in which we are a PFIC will be taxed as ordinary income earned in the current taxable year. The amount allocated to other
taxable years will be taxed at the highest marginal rates in effect for individuals or corporations, as applicable, to ordinary income
for each such taxable year, and an interest charge, generally applicable to underpayments of tax, will be added to the tax.

If we are a PFIC for any year
during which a U.S. Holder holds our Ordinary Shares, we must generally continue to be treated as a PFIC by that holder for all succeeding
years during which the U.S. Holder holds such Ordinary Shares, unless we cease to meet the requirements for PFIC status and the U.S. Holder
makes a “deemed sale” election with respect to our Ordinary Shares. If the election is made, the U.S. Holder will be deemed
to sell our Ordinary Shares it holds at their fair market value on the last day of the last taxable year in which we qualified as a PFIC,
and any gain recognized from such deemed sale would be taxed under the PFIC excess distribution regime. After the deemed sale election,
the U.S. Holder’s Ordinary Shares would not be treated as shares of a PFIC unless we subsequently become a PFIC.

If we are a PFIC for any taxable
year during which a U.S. Holder holds our Ordinary Shares and one of our non-U.S. subsidiaries is also a PFIC (i.e., 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 and would be taxed
under the PFIC excess distribution regime on distributions by the lower-tier PFIC and on gain from the disposition of shares of the lower-tier