Company: GVH
Filing Date: 2025-04-15
Form Type: DRS
Source: 0001641172-25-004806
Chunk: 99

Company: Globavend Holdings Ltd
Filing Date: 2025-04-15
Form: DRS
Chunk 99
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PFIC even though such U.S. Holder would not receive the proceeds of those distributions or dispositions. Any of our non-U.S. subsidiaries
that have elected to be disregarded as entities separate from us or as partnerships for U.S. federal income tax purposes would not be
corporations under U.S. federal income tax law and, accordingly, cannot be classified as lower-tier PFICs. However, non-U.S. subsidiaries
that have not made the election may be classified as a lower-tier PFIC if we are a PFIC during your holding period and the subsidiary
meets the PFIC income test or PFIC asset test. Each U.S. Holder is advised to consult its tax advisors regarding the application of the
PFIC rules to any of our non-U.S. subsidiaries.

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If we are a PFIC, a U.S. Holder
will not be subject to tax under the PFIC excess distribution regime on distributions or gains recognized on our Ordinary Shares if a
valid “mark-to-market” election is made by the U.S. Holder for our Ordinary Shares. An electing U.S. Holder generally would
take into account, as ordinary income each year, the excess of the fair market value of our Ordinary Shares held at the end of such taxable
year over the adjusted tax basis of such Ordinary Shares. The U.S. Holder would also take into account, as an ordinary loss each year,
the excess of the adjusted tax basis of such Ordinary Shares over their fair market value at the end of the taxable year, but only to
the extent of the excess of amounts previously included in income over ordinary losses deducted as a result of the mark-to-market election.
The U.S. Holder’s tax basis in our Ordinary Shares would be adjusted to reflect any income or loss recognized as a result of the
mark-to-market election. Any gain from a sale, exchange, or other disposition of our Ordinary Shares in any taxable year in which we are
a PFIC would be treated as ordinary income, and any loss from such sale, exchange, or other disposition would be treated first as ordinary
loss (to the extent of any net mark-to-market gains previously included in income) and thereafter as capital loss. If, after having been
a PFIC for a taxable year, we cease to be classified as a PFIC because we no longer meet the PFIC income test or PFIC asset test, the
U.S. Holder would not be required to take into account any latent gain