Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 64

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 10
Chunk 64
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 current
taxable year or the foreseeable future. However, no assurance can be given in this regard because the determination of whether we are
or will become a PFIC is a factual determination made annually that will depend, in part, upon the composition and classification of our
income and assets, including the relative amounts of income generated by our potential strategic investment business as compared to our
other businesses, and the value of the assets held by our potential strategic investment business as compared to our other businesses.
Because there are uncertainties in the application of the relevant rules, it is possible that the IRS may challenge our classification
of certain income and assets as non-passive, which may result in our being or becoming classified as a PFIC in the current or subsequent
years. Furthermore fluctuations in the market price of our Ordinary Shares may cause us to be a PFIC for the current or future taxable
years because the value of our assets for purposes of the asset test, including the value of our goodwill and unbooked intangibles, may
be determined by reference to the market price of our Ordinary Shares from time to time (which may be volatile). In estimating the value
of our goodwill and other unbooked intangibles, we have taken into account our market capitalization. Among other matters, if our market
capitalization is less than anticipated or subsequently declines, we may be or become a PFIC for the current or future taxable years.
The composition of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in
the initial public offering. Under circumstances where our revenues from activities that produce passive income significantly increases
relative to our revenues from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash
for active purposes, our risk of becoming a PFIC may substantially increase.

If we are a PFIC for
any year during which a U. S. Holder holds our Ordinary Shares, we generally will continue to be treated as a PFIC for all succeeding years
during which such U. S. Holder holds our Ordinary Shares unless, in such case, we cease to be treated as a PFIC and such U. S. Holder makes
a deemed sole election.

The discussion below
under “ - Dividends” and “ - Sale or Other Disposition” is written on the basis that we will not be or
become classified as a PFIC for U. S. federal income tax purposes. The U.