Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 78

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 78
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exchange rate in effect on the date the dividend is includible in the U.S. Holder’s income, regardless of whether the payment is
in fact converted into U.S. dollars on the date of receipt. Generally, a U.S. Holder should not recognize any foreign currency gain or
loss if the foreign currency is converted into U.S. dollars on the date the payment is received. However, any gain or loss resulting
from currency exchange fluctuations during the period from the date the U.S. Holder includes the dividend payment in income to the date
such U.S. Holder actually converts the payment into U.S. dollars will be treated as ordinary income or loss.

To the extent that the amount
of any distribution made by us on the Ordinary Shares exceeds our current and accumulated earnings and profits for a taxable year (as
determined under U.S. federal income tax principles), the distribution will first be treated as a tax-free return of capital, causing
a reduction in the adjusted basis of the U.S. Holder’s Ordinary Shares, and to the extent the amount of the distribution exceeds
the U.S. Holder’s tax basis, the excess will be taxed as capital gain recognized on a sale or exchange as described below under
“— Sale, Exchange, Redemption or Other Taxable Disposition of Ordinary Shares.” However, we may not calculate
earnings and profits in accordance with U.S. federal income tax principles. In such event, a U.S. Holder should expect to generally treat
distributions we make as dividends.

Sale, Exchange, Redemption or Other Taxable Disposition of Ordinary Shares

Subject to the discussion
below under “— Passive Foreign Investment Company Status,” a U.S. Holder will generally recognize gain or loss
on any sale, exchange, or other taxable disposition of Ordinary Shares in an amount equal to the difference between the amount realized
on the disposition and such U.S. Holder’s adjusted tax basis in such Ordinary Shares. Any gain or loss recognized by a U.S. Holder
on a taxable disposition of Ordinary Shares will generally be capital gain or loss and will be long-term capital gain or loss if the
holder’s holding period in the Ordinary Shares exceeds one year at the time of the disposition. Preferential tax rates may apply
to long-term capital gains of non-corporate U.S. Holders. The deductibility of capital losses is subject to limitations. Any gain or
loss recognized by a U.S. Holder on the sale or exchange of Ordinary Shares will generally be treated as U