Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 74

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 74
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, it could be subject to substantial liability for additional U.S. income taxes,
and the gross amount of any dividend payments to its non-U.S. investors could be subject to U.S. withholding tax.

The remainder of this discussion
assumes that PubCo will not be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code.

U.S. Federal Income Tax Consequences of Ownership and Disposition of Ordinary Shares

Distribution on Ordinary Shares

Subject to the PFIC rules
discussed below “— Passive Foreign Investment Company Status,” a U.S. Holder generally will be required to include
in gross income any distribution of cash or property paid on Ordinary Shares that is treated as a dividend for U.S. federal income tax
purposes. A distribution on such shares generally will be treated as a dividend for U.S. federal income tax purposes to the extent the
distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles).
Such dividends paid by us will be taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends-received
deduction generally allowed to domestic corporations in respect of dividends received from other domestic corporations.

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Dividends received by non-corporate
U.S. Holders from a “qualified foreign corporation” may be eligible for reduced rates of taxation, provided that certain
holding period requirements and other conditions are satisfied. For these purposes, a non-U.S. corporation will be treated as a qualified
foreign corporation with respect to dividends paid by that corporation on shares that are readily tradable on an established securities
market in the United States. The Treasury guidance indicates that shares listed on the Nasdaq will be considered readily tradable on
an established securities market in the United States. Although the Ordinary Shares are currently listed on the Nasdaq, there can be
no assurance that the Ordinary Shares will be considered readily tradable on an established securities market in future years. Non-corporate
U.S. Holders that do not meet a minimum holding period requirement or that elect to treat the dividend income as “investment income”
pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced
rates of taxation regardless of our status as a qualified foreign corporation. In addition, the rate reduction will not apply to dividends
if the recipient