Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 258

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 258
---
 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 income for such taxable year is passive income;                                                              
 or                                                                                                                                     |
| · | 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”).                                                                                                             |

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 this offering
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 this offering) on any particular quarterly testing date for
purposes of the asset test.

| 161 |

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 as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable
year or any future taxable year. Depending on the amount of cash we raise in this offering, together with any other assets held for the
production of passive income, it is possible that, for our current taxable year or for any subsequent taxable year, more than 50% of
our assets may be assets held for the production of passive income. We will make this determination following the end of any particular
tax year. Although the law in this regard is unclear, we are treating the VIE as being owned by us for United States federal income tax
purposes, not only because we control