Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 160

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 160
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 average of such distributions over the preceding three-year period or,
if shorter, the U.S. Holder’s holding period for its Ordinary Shares. Excess distributions and gains on the sale, exchange or other
disposition of stock of a corporation which was a PFIC at any time during the U.S. Holder’s holding period are allocated ratably
to each day of the U.S. Holder’s holding period. Amounts allocated to the taxable year in which the disposition occurs and amounts
allocated to any period in the shareholder’s holding period before the first day of the first taxable year that the corporation
was a PFIC will be taxed as ordinary income (rather than capital gain) earned in the taxable year of the disposition. Amounts allocated
to each of the other taxable years in the U.S. Holder’s holding period are not included in gross income for the year of the disposition,
but are subject to a tax (equal to the highest ordinary income tax rates in effect for those years, and increased by an interest charge
at the rate applicable to income tax deficiencies) that is added to the tax otherwise due for the taxable year in which the disposition
occurs. The tax liability for amounts allocated to years before the year of disposition or “excess distribution” cannot be
offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the Equity Shares cannot be treated
as capital, even if a U.S. Holder held such Equity Shares as capital assets. The preferential U.S. federal income tax rates for dividends
and long-term capital gain of individual U.S. Holders (as well as certain trusts and estates) would not apply, and special rates would
apply for calculating the amount of the foreign tax credit with respect to excess distributions.

If a corporation is a PFIC
for any taxable year during which a U.S. Holder holds Ordinary Shares in the corporation, then the corporation generally will continue
to be treated as a PFIC with respect to the holder’s Ordinary Shares, even if the corporation no longer satisfies either the passive
income or passive asset tests described above, unless the U.S. Holder terminates this deemed PFIC status by electing to recognize gain,
which will be taxed under the excess distribution rules as if such Ordinary Shares had been sold on the last day of the last taxable
year for which the corporation was a PFIC.

The
excess distribution rules may be avoided if a U.S. Holder makes a QEF election effective beginning with the