Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 76

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 76
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 Ordinary Shares. Any gain or loss recognized by a U.S. Holder
on a taxable disposition of Ordinary Shares will generally be capital gain or loss and will be long-term capital gain or loss if the
holder’s holding period in the Ordinary Shares exceeds one year at the time of the disposition. Preferential tax rates may apply
to long-term capital gains of non-corporate U.S. Holders. The deductibility of capital losses is subject to limitations. Any gain or
loss recognized by a U.S. Holder on the sale or exchange of Ordinary Shares will generally be treated as U.S. source gain or loss.

Passive Foreign Investment Company Status

Certain adverse U.S. federal
income tax consequences could apply to a U.S. Holder if we are treated as a PFIC for any taxable year during which U.S. Holders hold
our securities. A foreign (i.e., non-U.S.) corporation will be classified as a PFIC for U.S. federal income tax purposes if at least
75% of its gross income in a taxable year, including its pro rata share of the gross income of any entity in which it is considered to
own at least 25% of the interest by value, is passive income. Alternatively, a foreign corporation will be a PFIC if at least 50% of
its assets in a taxable year, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro
rata share of the assets of any entity in which it is considered to own at least 25% of the interest by value, are held for the production
of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties
derived from the active conduct of a trade or business) and gains from the disposition of passive assets.

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The determination of whether
we are a PFIC is a fact-intensive determination made on an annual basis applying principles and methodologies that in some circumstances
are unclear and subject to varying interpretation. Under the income test described above, our status as a PFIC depends on the composition
of our income which will depend on the transactions we enter into in the future and our corporate structure. The composition of our income
and assets is also affected by the spending of the cash we raise in any offering, including this offering. We do not currently expect
to be a PFIC for U.S. federal income tax purposes, but this conclusion is a factual determination