Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 102

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 10
Chunk 102
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 of 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 treat
our consolidated affiliated entities as being owned by us for United States federal income tax purposes, not only because we exercise
effective control over the operation of such entities but also because we are entitled to substantially all of their economic benefits,
and, as a result, we consolidate their operating results in our combined and consolidated financial statements. In particular, because
the value of our assets for purposes of the asset test will generally be determined based on the market price of our ordinary shares and
because cash is generally considered to be an asset held for the production of passive income, our PFIC status will depend in large part
on the market price of our ordinary shares. Accordingly, fluctuations in the market price of the ordinary shares may cause us to become
a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects and the composition of our income
and assets will be affected by how, and how quickly, we spend our liquid assets. We are under no obligation to take steps to reduce the
risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets will depend upon material facts
(including the market price of our ordinary shares from time to time) that may not be within our control. If we are a PFIC for any year
during which you hold ordinary shares, we will continue to be treated as a PFIC for all succeeding years during which you hold ordinary
shares. However, if we cease to be a PFIC and you did not previously make a timely “mark-to-market” election as described
below, you may avoid some of the adverse effects of the PFIC regime by making a “purging election” (as described below) with
respect to the ordinary shares.

If we are a PFIC for your taxable year(s) during
which you hold ordinary shares, you will be subject to special tax rules with respect to any “excess distribution” that you
receive and any gain you realize from a sale or other disposition (including a pledge) of the ordinary shares, unless you make a “mark-to-market”
election as discussed below. Distributions you