Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 210

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 210
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 dollars) for the share and your tax basis
(in U. S. dollars) in the Ordinary Shares. The gain or loss will be capital gain or loss. If you are a non-corporate U. S. Holder, including
an individual U. S. Holder, who has held the Ordinary Shares for more than one year, you will generally be eligible for reduced tax rates.
The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as
United States source income or loss for foreign tax credit limitation purposes which will generally limit the availability of foreign
tax credits.

Passive
Foreign Investment Company (“ PFIC”)

A
non-U. S. corporation is considered a PFIC, as defined in Section 1297(a) of the US Internal Revenue Code, for any taxable year if either:

  at least 75% of its gross                           

  at least 50% of the value                                                                                                               
  of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce  
  or are held for the production of passive income (the “asset test”).                                                                    
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Passive
income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of
a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets
and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by
value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we raise
in IPO will generally be considered to be held for the production of passive income and (2) the value of our assets must be determined
based on the market value of our Ordinary Shares from time to time, which could cause the value of our non-passive assets to be less
than 50% of the value of all of our assets (including the cash raised in the IPO) on any particular quarterly testing date for purposes
of the asset test.

Based
on our operations and the composition of our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make
a separate determination each year