Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 212

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 212
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 below. Distributions you receive in a taxable
year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years
or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

  the excess distribution or gain will be allocated ratably                                                                              
  the amount allocated to your current taxable year,                                                                                     
  the amount allocated to each of your other taxable                                                                                     

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.

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 income or loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions
by corporations which are not PFICs