Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 63

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 10
Chunk 63
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discussion, a “ U. S. Holder” is a beneficial owner of our Ordinary Shares that is, for U. S. federal income tax purposes:

  an individual who is a citizen or resident of the United States;  

  a corporation (or other entity treated as a corporation for U. S. federal income tax purposes) created in, or organized under the laws of the United States or any state thereof or the District ...  

  an estate the income of which is includible in gross income for U. S. federal income tax purposes regardless of its source; or  

  a trust (i) the administration of which is subject to the primary supervision of a U. S. court and which has one or more U. S. persons who have the authority to control all substantial decision...  

  If a partnership (or other entity treated as a partnership for U. S. federal income tax purposes) is a beneficial owner of our Ordinary Shares, the tax treatment of a partner in the partnership...  

Passive Foreign
Investment Company Considerations

A non-U. S. corporation,
such as our company, will be classified as a PFIC for U. S. federal income tax purposes for any taxable year if either (i) 75% or more
of its gross income for such year consists of certain types of “passive” income or (ii) 50% or more of the value of its assets
(determined on the basis of a quarterly average) during such year is attributable to assets that produce or are held for the production
of passive income, or the asset test. Passive income generally includes, among other things, dividends, interest, rents, royalties, and
gains from the disposition of passive assets. Passive assets are those which give rise to passive income, and include assets held for
investment, as well as cash, assets readily convertible into cash, and working capital. The company’s goodwill and other unbooked
intangibles are taken into account and may be classified as active or passive depending upon the relative amounts of income generated
by the company in each category. We will be treated as owning a proportionate share of the assets and earning a proportionate share of
the income of any other corporation in which we own, directly or indirectly, 25% or more (by value) of the stock.

Based upon our current
and projected income and assets and projections as to the market price of our Ordinary Shares, we do not expect to be a PFIC for the