Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 261

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 261
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 allocated ratably over your 
 holding period for the Ordinary Shares;                             |

| · | the amount allocated to your current taxable year, and any amount allocated                                                          
 to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income,          
 and                                                                                                                                  |
| · | the amount allocated to each of your other taxable year(s) will                                                                      
 be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will 
 be imposed on the resulting tax attributable to each such year.                                                                      |

The tax liability for amounts
allocated to years prior to the year of disposition or “excess distribution” cannot be offset by any net operating losses
for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if you
hold the Ordinary Shares as capital assets.

| 162 |

A U.S. Holder of “marketable
stock” (as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code
for such stock to elect out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which
you hold (or are deemed to hold) Ordinary Shares and for which we are determined to be a PFIC, you will include in your income each year
an amount equal to the excess, if any, of the fair market value of the Ordinary Shares as of the close of such taxable year over your
adjusted basis in such Ordinary Shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary
loss for the excess, if any, of the adjusted basis of the Ordinary Shares over their fair market value as of the close of the taxable
year. Such ordinary loss, however, is allowable only to the extent of any net mark-to-market gains on the Ordinary Shares included in
your income for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual
sale or other disposition of the Ordinary Shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized
on the actual sale or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market
gains previously included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such