Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 103

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 10
Chunk 103
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 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 over your holding period for the ordinary shares;                                                                                           
  the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary i...  
  the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax w...  

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 for such stock to elect out of the tax treatment discussed above. If you
make a mark-to-market election for the first taxable year during 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. However, such ordinary loss 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