Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 260

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 260
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 If the Ordinary Shares are regularly traded on Nasdaq and if you are a holder of Ordinary Shares, the
mark-to-market election would be available to you if we were to be or become a PFIC.

Alternatively, a U.S. Holder
of stock in a PFIC may make a “qualified electing fund” election under Section 1295(b) of the US Internal Revenue
Code with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing
fund election with respect to a PFIC will generally include in gross income for a taxable year such holder’s pro rata share
of the corporation’s earnings and profits for the taxable year. The qualified electing fund election, however, is available only
if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S.
Treasury regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing
fund election. If you hold Ordinary Shares in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue
Service Form 8621 in each such year and provide certain annual information regarding such Ordinary Shares, including regarding distributions
received on the Ordinary Shares and any gain realized on the disposition of the Ordinary Shares.

If you do not make a timely
“mark-to-market” election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary
Shares, then such Ordinary Shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in
a future year, unless you make a “purging election” for the year we cease to be a PFIC. A “purging election”
creates a deemed sale of such Ordinary Shares at their fair market value on the last day of the last year in which we are treated as
a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating the gain
as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the fair market
value of the Ordinary Shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new holding
period will begin the day after such last day) in your Ordinary