Company: GVH
Filing Date: 2025-04-15
Form Type: DRS
Source: 0001641172-25-004806
Chunk: 101

Company: Globavend Holdings Ltd
Filing Date: 2025-04-15
Form: DRS
Chunk 101
---
. Holder to make
a QEF election, prospective investors should assume that a QEF election will not be available.

The U.S. federal income tax
rules relating to PFICs are very complex. Prospective U.S. investors are strongly urged to consult their own tax advisors with respect
to the impact of PFIC status on the purchase, ownership, and disposition of our Ordinary Shares, the consequences to them of an investment
in a PFIC, any elections available with respect to the Ordinary Shares, and the IRS information reporting obligations with respect to
the purchase, ownership, and disposition of Ordinary Shares of a PFIC.

Distributions

Subject to the discussion
above under “PFIC Consequences,” a U.S. Holder that receives a distribution with respect to our Ordinary Shares generally
will be required to include the gross amount of such distribution in gross income as a dividend when actually or constructively received
to the extent of the U.S. Holder’s pro rata share of our current and/or accumulated earnings and profits (as determined under U.S.
federal income tax principles). To the extent a distribution received by a U.S. Holder is not a dividend because it exceeds the U.S. Holder’s
pro rata share of our current and accumulated earnings and profits, it will be treated first as a tax-free return of capital and reduce
(but not below zero) the adjusted tax basis of the U.S. Holder’s Ordinary Shares. To the extent the distribution exceeds the adjusted
tax basis of the U.S. Holder’s Ordinary Shares, the remainder will be taxed as capital gain. Because we may not account for our
earnings and profits in accordance with U.S. federal income tax principles, U.S. Holders should expect all distributions to be reported
to them as dividends.

| 56 |

Distributions on our Ordinary
Shares that are treated as dividends generally will constitute income from sources outside the United States for foreign tax credit purposes
and generally will constitute passive category income. Such dividends will not be eligible for the “dividends received” deduction
generally allowed to corporate shareholders with respect to dividends received from U.S. corporations. Dividends paid by a “qualified
foreign corporation” to certain non-corporate U.S. Holders may be eligible for taxation at a reduced capital gains rate rather than
the marginal tax rates generally applicable to ordinary income, provided that a holding period requirement (more than 60 days of ownership,
without protection from the risk of loss, during the