Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 142

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 10
Chunk 142
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 will be treated as a capital gain or loss. If you are
a non-corporate U. S. Holder, including an individual U. S. Holder, who has held the Ordinary Shares for more than one year,
you will be eligible for reduced tax rates. The deductibility of capital losses is subject to limitations. Any such gain or loss that
you recognize will generally be treated as United States source income or loss for foreign tax credit limitation purposes.

Passive
Foreign Investment Company Rules

A non-U. S. corporation
is considered a PFIC, as defined in Section 1297(a) of the US Internal Revenue Code (“ IRC”), for any taxable year
if either:

  at                                                   

  at                                                                                                                                      
  least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable  
  to assets that produce or are held for the production of passive income (the “asset test”).                                             
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Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct
of a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the
assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25%
(by value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we
raised in the IPO will generally be considered to be held for the production of passive income and (2) the value of our assets must be
determined based on the market value of our securities from time to time, which could cause the value of our non-passive assets to be
less than 50% of the value of all of our assets (including the cash raised in the IPO) on any particular quarterly testing date for purposes
of the asset test.

Based on our operations
and the composition of our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination
each year as to whether we are a PFIC, and there can be no assurance with respect to our status as a PFIC for any future taxable years.
Notwithstanding the cash we raised in the IPO, together with other assets held