Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 66

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 10
Chunk 66
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 sale or other disposition of Ordinary Shares in an amount equal to the difference between the amount realized
upon the disposition and the holder’s adjusted tax basis in such Ordinary Shares. Such gain or loss will generally be capital gain
or loss. Any such capital gain or loss will be long term if the Ordinary Shares have been held for more than one year. Non-corporate U. S.
Holders (including individuals) generally will be subject to United States federal income tax on long-term capital gain at preferential
rates. The deductibility of a capital loss may be subject to limitations. Any such gain or loss that the U. S. Holder recognizes will generally
be treated as U. S. source income or loss for foreign tax credit limitation purposes, which could limit the availability of foreign tax
credits. Each U. S. Holder is advised to consult its tax advisor regarding the tax consequences if a foreign tax is imposed on a disposition
of our Ordinary Shares, including the applicability of any tax treaty and the availability of the foreign tax credit under its particular
circumstances.

Passive Foreign
Investment Company Rules

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 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, including, under certain circumstances, a pledge, Ordinary
Shares. Under the PFIC rules:

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

  the amount allocated to the current taxable year and any taxable years in the U. S. Holder’s holding period prior to the first taxable year in which we are classified as a PFIC (each, a “pre-PF...  

  the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate,