Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 98

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 10
Chunk 98
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 the disposition of passive assets. We will be treated as owning
a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly
or indirectly, more than 25% (by value) of the stock.

No
assurance can be given as to whether we may be or may become a PFIC, as this is a factual determination made annually that will depend,
in part, upon the composition of our income and assets. Furthermore, the composition of our income and assets may also be affected by
how, and how quickly, we use our liquid assets and the cash raised in our initial public offering. Under circumstances where our revenue
from activities that produce passive income significantly increase relative to our revenue from activities that produce non-passive income,
or where we determine not to deploy significant amounts of cash for active purposes, our risk of becoming classified as a PFIC may substantially
increase. In addition, because there are uncertainties in the application of the relevant rules, it is possible that the Internal Revenue
Service may challenge our classification of certain income and assets as non-passive or our valuation of our tangible and intangible
assets, each of which may result in our becoming a PFIC for the current or subsequent taxable years. If we were classified as a PFIC
for any year during which a U. S. Holder held our Ordinary Shares, we generally would continue to be treated as a PFIC for all succeeding
years during which such U. S. Holder held our Ordinary Shares even if we cease to be a PFIC in subsequent years, unless certain elections
are made.

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If
we are classified as a PFIC for any taxable year during which a U. S. Holder holds our Ordinary Shares, and unless the U. S. Holder makes
a mark-to-market election (as described below), the U. S. Holder will generally be subject to special tax rules that have a penalizing
effect, regardless of whether we remain a PFIC, on (i) any excess distribution that we make to the U. S. Holder (which generally means
any distribution paid during a taxable year to a U. S. Holder that is greater than 125 percent of the average annual distributions paid
in the three preceding taxable years or, if shorter, the U. S. Holder’s holding period for the Ordinary Shares), and (ii) any gain
realized on the sale or other disposition of Ordinary Shares