Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 146

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 10
Chunk 146
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edent
that was a U. S. Holder did not make either a timely qualified electing fund election for our first taxable year as a PFIC in which
the U. S. Holder held (or was deemed to hold) our Class A Ordinary Shares, or a mark-to-market election and ownership of those
Class A Ordinary Shares are inherited, a special provision in IRC Section 1291(e) provides that the new U. S. Holder’s
basis should be reduced by an amount equal to the IRC Section 1014 basis minus the decedent’s adjusted basis just before death.
As such if we are determined to be a PFIC at any time prior to a decedent’s passing, the PFIC rules will cause any new U. S. Holder
that inherits our Class A Ordinary Shares from a U. S. Holder to not get a step-up in basis under IRC Section 1014 and
instead will receive a carryover basis in those Class A Ordinary Shares.

You
are urged to consult your tax advisors regarding the application of the PFIC rules to your investment in our Ordinary Shares and the
elections discussed above.

Information
Reporting

Dividend
payments with respect to our Class A Ordinary Shares and proceeds from the sale, exchange or redemption of our Class A Ordinary Shares
may be subject to information reporting to the U. S. Internal Revenue Service and possible U. S. backup withholding at a current
rate of 24%. Backup withholding will not apply, however, to a U. S. Holder who furnishes a correct taxpayer identification number
and makes any other required certification on U. S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup
withholding. U. S. Holders who are required to establish their exempt status generally must provide such certification on U. S. Internal
Revenue Service Form W-9. U. S. Holders are urged to consult their tax advisors regarding the application of the U. S. information
reporting and backup withholding rules.

Backup
withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U. S. federal income tax
liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim
for refund with the U. S. Internal Revenue Service and furnishing any required information. We do not intend to withhold taxes for
individual shareholders. However, transactions effected through certain brokers or other intermediaries may