Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 138

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 10
Chunk 138
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or portion thereof) that is included in the holding period of a U. S. Holder of our shares or redeemable warrants and, in the case of our shares, the U. S. Holder did not make either a timely qualified electing fund (“ QEF”) election for our first taxable year as a PFIC in which the U. S. Holder held (or was deemed to hold) such shares, a QEF election along with a purging election, or a mark-to-market election, each as described below, such holder generally will be subject to special rules for regular U. S. federal income tax purposes with respect to:

  any gain recognized by the U. S. Holder on the sale or other disposition of its shares or redeemable warrants; and  

  any “excess distribution” made to the U. S. Holder (generally, any distributions to such U. S. Holder during a taxable year of the U. S. Holder that are greater than 125% of the average annual ...  

Under these rules,

  the U. S. Holder’s gain or excess distribution will be allocated ratably over the U. S. Holder’s holding period for the shares or redeemable warrants;  

  the amount allocated to the U. S. Holder’s taxable year in which the U. S. Holder recognized the gain or received the excess distribution, or to the period in the U. S. Holder’s holding period ...  

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  the amount allocated to other taxable years (or portions thereof) of the U. S. Holder and included in its holding period will be taxed at the highest tax rate in effect for that year and applic...  

  the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such other taxable year of the U. S. Holder.  

In general, if we are determined to be a PFIC, a U. S. Holder may avoid the PFIC tax consequences described above in respect to our shares by making a timely QEF election (or a QEF election along with a purging election, as described below). Pursuant to the QEF election, a U. S. Holder will be required to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U. S. Holder