Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 197

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 197
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rents, royalties, and gains from the disposition of passive assets. If we are determined to be a PFIC for any taxable year (or portion
thereof) that is included in the holding period of a U.S. Holder of our securities, the U.S. Holder may be subject to increased U.S.
federal income tax liability and may be subject to additional reporting requirements. Our actual PFIC status for our current taxable
year may depend on whether we qualify for the PFIC start-up exception. Our actual PFIC status for any taxable year, however, will not
be determinable until after the end of such taxable year (or after the end of the start-up period, if later). Accordingly, there can
be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. If we determine we
are a PFIC for any taxable year, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC
Annual Information Statement, in order to enable the U.S. Holder to make and maintain a “qualified electing fund” election,
but there can be no assurance that we will timely provide such required information. A U.S. Holder may also mitigate the adverse tax
consequences by timely making a mark-to-market election with respect to our ordinary shares. We urge U.S. Holders to consult their own
tax advisors regarding the possible application and consequences of the PFIC rules and the availability of such elections.

Our
initial business combination or transactions relating thereto may result in taxes imposed on us and our shareholders.

We
may, in connection with our initial business combination and subject to requisite shareholder approval by special resolution under the
Companies Act, merge or otherwise combine with another company, or transfer by way of continuation to the jurisdiction in which the target
company or business is located or another jurisdiction. A shareholder may be required to recognize taxable income or gain with respect
to our business combination or transactions relating thereto in the jurisdiction in which the shareholder is a tax resident (or in which
its members are resident if it is a tax transparent entity) or in which the target company is located. In the event of a transfer by
way of continuation or merger, tax liability may attach prior to any consummation of redemptions of our ordinary shares.

In
addition, we could be treated as a tax resident in the jurisdiction in which the target company or business is located, which could result