Company: GRRR
Filing Date: 2025-07-02
Form Type: 424B5
Source: 0001213900-25-060827
Chunk: 32

Company: Gorilla Technology Group Inc.
Filing Date: 2025-07-02
Form: 424B5
Chunk 32
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.S. Holder will be allowed a deduction for the excess,
if any, of the adjusted basis of the ordinary shares, pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants
over their fair market value as of the close of the taxable year. However, deductions will be allowed only to the extent of any net mark-to-market
gains on the ordinary shares, pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants included in the U.S. Holder’s
income for prior taxable years. Amounts included in income under a mark-to-market election, as well as gain on the actual sale or
other disposition of the ordinary shares, pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants, will be
treated as ordinary income. Ordinary loss treatment will also apply to the deductible portion of any mark-to-market loss on the ordinary
shares, pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants, as well as to any loss realized on the actual
sale or disposition of the ordinary shares, pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants, to the
extent the amount of such loss does not exceed the net mark-to-market gains for such ordinary shares, pre-funded warrants or ordinary
shares received upon exercise of pre-funded warrants previously included in income. A U.S. Holder’s basis in the ordinary shares,
pre-funded warrants or ordinary shares received upon exercise of pre-funded warrants will be adjusted to reflect any mark-to-market income
or loss. If a U.S. Holder makes a mark-to-market election, any distributions Gorilla makes would generally be subject to the rules
discussed above under “— Distributions on ordinary shares,” except the lower rates applicable to qualified dividend
income would not apply.

The mark-to-market election is available only
for “marketable stock,” which is stock that is regularly traded on a qualified exchange or other market, as defined in applicable
U.S. Treasury regulations. The ordinary shares, which are listed on Nasdaq, are expected to qualify as marketable stock for purposes
of the PFIC rules, but there can be no assurance that ordinary shares will be “regularly traded” for purposes of these rules.
Because a mark-to-market election cannot be made for equity interests in any Lower-Tier PFICs, a U.S. Holder that does not make the
applicable QEF elections generally will continue to be subject to the Excess Distribution Rules with respect to its indirect interest
in any Lower-Tier PFIC