Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 101

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 10
Chunk 101
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Company and all distributions, interest and other amounts paid by us in respect of our shares to persons who are not resident in the
BVI are exempt from all provisions of the Income Tax Ordinance in the BVI. No estate, inheritance, succession or gift tax, rate, duty,
levy or other charge is payable by persons who are not resident in the BVI with respect to any of our shares, debt obligations or other
securities. All instruments relating to transactions in respect of our shares, debt obligations or other securities and all instruments
relating to other transactions relating to our business are exempt from payment of stamp duty in the BVI provided that they do not relate
to real estate in the BVI. There are currently no withholding taxes or exchange control regulations in the BVI applicable to us or our
shareholders.

The
tax consequences that would apply if we are a PFIC would also be different from those described above if a U. S. Holder were able to make
a valid qualified electing fund, or QEF, election. As we do not expect to provide U. S. Holders with the information necessary for a U. S.
Holder to make a QEF election, prospective investors should assume that a QEF election will not be available.

The
U. S. federal income tax rules relating to PFICs are very complex. Prospective U. S. investors are strongly urged to consult their own
tax advisors with respect to the impact of PFIC status on the purchase, ownership and disposition of our shares, the consequences to
them of an investment in a PFIC, any elections available with respect to the shares and the IRS information reporting obligations with
respect to the purchase, ownership and disposition of ordinary shares of a PFIC.

Distributions

Subject
to the discussion above under “ - Passive Foreign Investment Company Consequences,” a U. S. Holder that receives a distribution
with respect to our shares generally will be required to include the gross amount of such distribution in gross income as a dividend
when actually or constructively received to the extent of the U. S. Holder’s pro rata share of our current and/or accumulated earnings
and profits (as determined under U. S. federal income tax principles). To the extent a distribution received by a U. S. Holder is not a
dividend because it exceeds the U. S. Holder’s pro rata share of our current and accumulated earnings and profits, it will be treated
first as a tax-free return