Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 140

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 140
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 of the Inland Revenue
Department of Hong Kong, no withholding tax is payable in Hong Kong in respect of dividends paid by the Hong Kong subsidiaries in Hong
Kong.

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Capital Gains and Profit Tax

The Inland Revenue Ordinance provides, among other
things, that profits tax shall be charged on every person carrying on a trade, profession or business in Hong Kong in respect of his or
her assessable profits arising in or derived from Hong Kong at the standard rate at 16.5%, except for the qualifying group entity under
the two-tiered profits tax regime. The two-tiered profits tax regime is applicable to years of assessment commencing on or after
April 1, 2018, for which the first HK$2,000,000 of assessable profits are taxed at the rate of 8.25% and the remaining assessable
profits are taxed at 16.5%. The Inland Revenue Ordinance also contains detailed provisions relating to, among other things, permissible
deductions for outgoings and expenses, set-offs for losses and allowances for depreciation of capital assets.

No tax is imposed in Hong Kong in respect of capital
gains from the sale of shares. However, trading gains from the sale of shares by persons carrying on a trade, profession or business in
Hong Kong, where such gains are derived from or arise in Hong Kong, will be subject to Hong Kong profits tax. Certain categories of taxpayers
(for example, financial institutions, insurance companies and securities dealers) are likely to be regarded as deriving trading gains
rather than capital gains, unless these taxpayers can prove that the investment securities are held for long-term investment purposes.

Under the Stamp Duty Ordinance (Chapter 117 of the
Laws of Hong Kong), the Hong Kong stamp duty currently charged at the ad valorem rate of 0.1% on the higher of the consideration for or
the market value of the shares, will be payable by the purchaser on every purchase and by the seller on every sale of Hong Kong shares
(in other words, a total of 0.2% is currently payable on a typical sale and purchase transaction of Hong Kong shares). In addition, a
fixed duty of HK$5 is currently payable on any instrument of transfer of Hong Kong shares. Where one of the parties is a resident outside
Hong Kong and does not pay the ad valorem duty due by it, the duty not paid will be assessed on the instrument of transfer