Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 92

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 92
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Regulations Related to Hong Kong Taxation

Under the Inland Revenue Ordinance
(Chapter 112 of the Laws of Hong Kong), where an employer commences to employ in Hong Kong an individual who is or is likely to be chargeable
to tax, or any married person, the employer shall give a written notice to the Commissioner of Inland Revenue not later than three months
after the date of commencement of such employment. Where an employer ceases or is about to cease to employ in Hong Kong an individual
who is or is likely to be chargeable to tax, or any married person, the employer shall give a written notice to the Commissioner of Inland
Revenue not later than one month before such individual ceases to be employed in Hong Kong.

Withholding Tax on Dividends

Under the current practice 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.

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.

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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