Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 382

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 382
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”), the Domestication could be a taxable event to U.S. Holders under the PFIC provisions of the Code if GigCapital7 is considered a PFIC.

| a. | Definition of a PFIC |

A foreign (i.e., non-U.S.)corporation will be classified as a PFIC for U.S. federal income tax purposes if either (a) at least seventy five percent (75%) of its gross income in a taxable year, including its pro rata share of the gross income of any corporation in which it is considered to own at least twenty five percent (25%) of the shares by value, is passive income or (b) at least fifty percent (50%) of its assets in a taxable year (generally determined based on fair market value and averaged quarterly over the year), including its pro rata share of the assets of any corporation in which it is considered to own at least twenty five percent (25%) of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business received from unrelated persons) and gains from the disposition of passive assets. The determination of whether a foreign corporation is a PFIC is made annually.

| c. | PFIC Status of GigCapital7 |

Because GigCapital7 is a blank check company with no current active business prior to the Business Combination, and based upon the composition of its income and assets, and upon a review of its financial statements, GigCapital7 believes that it likely has been a PFIC since its first taxable year and will likely be considered a PFIC for the taxable year which ends as a result of the Domestication. However, GigCapital7’s actual PFIC status for any taxable year will not be determinable until after the end of such taxable year. Accordingly, there can be no assurance with respect to GigCapital7’s status as a PFIC for the taxable year which ends as a result of the Domestication. In addition, GigCapital7’s U.S. counsel expresses no opinion with respect to GigCapital7’s PFIC status for any taxable year.

| d. | Effects of PFIC Rules on the Domestication |

Even if the Domestication qualifies as an F Reorganization, Section 1291(f) of the Code requires that, to the extent provided in Treasury Regulations, a U.S. person who disposes of stock of a PFIC (including for this purpose