Company: GVH
Filing Date: 2025-04-15
Form Type: DRS
Source: 0001641172-25-004806
Chunk: 97

Company: Globavend Holdings Ltd
Filing Date: 2025-04-15
Form: DRS
Chunk 97
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 Shares should consult their own tax advisors as to the particular tax consequences applicable to them relating to the
purchase, ownership, and disposition of our Ordinary Shares, including the applicability of U.S. federal, state, and local tax laws and
non-U.S. tax laws.

Passive Foreign Investment Company (“PFIC”) Consequences

In general, a corporation
organized outside the United States will be treated as a PFIC for any taxable year in which either (i) at least 75% of its gross income
is “passive income” (“PFIC income test”), or (ii) on average at least 50% of its assets, determined on a quarterly
basis, are assets that produce passive income or are held for the production of passive income (“PFIC asset test”). Passive
income for this purpose generally includes, among other things, dividends, interest, royalties, rents, and gains from the sale or exchange
of property that gives rise to passive income. Assets that produce or are held for the production of passive income generally include
cash (even if held as working capital or raised in a public offering), marketable securities, and other assets that may produce passive
income. Generally, in determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation
in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.

Although PFIC status is determined
on an annual basis and generally cannot be determined until the end of a taxable year, based on the nature of our current and expected
income and the current and expected value and composition of our assets, we do not presently expect to be a PFIC for our current taxable
year or the foreseeable future. However, there can be no assurance given in this regard because the determination of whether we are or
will become a PFIC is a fact-intensive inquiry made on an annual basis that depends, in part, upon the composition of our income and assets.
In addition, there can be no assurance that the IRS will agree with our conclusion or that the IRS would not successfully challenge our
position.

If we are a PFIC in any taxable
year during which a U.S. Holder owns our Ordinary Shares, the U.S. Holder could be liable for additional taxes and interest charges under
the “PFIC excess distribution regime” upon (i) a distribution paid during a taxable year that is greater than 125% of the
average