Company: DLO
Filing Date: 2025-09-04
Form Type: 424B3
Source: 0000950103-25-011286
Chunk: 59

Company: dLocal Ltd
Filing Date: 2025-09-04
Form: 424B3
Chunk 59
---
 if we hold our proportionate share of the assets of, and receive directly our proportionate share of the income of, any
other corporation in which we directly or indirectly own at least 25%, by value, of the shares of such corporation. Passive income generally
includes dividends, interest, certain non-active rents and royalties, and capital gains.

Based on our current operations, income, assets
and certain estimates and projections, including as to the relative values of our goodwill (which may be determined, in part, by reference
to the market price of our Class A common shares) and other assets, we do not expect to be a PFIC for our 2025 taxable year or to become
one in the foreseeable future. However, there can be no assurance that the IRS will agree with our conclusion. In addition, whether we
will be a PFIC in 2025 or any future year is uncertain because, among other things, (i) we hold and expect to continue to hold a substantial
amount of cash, which is generally categorized as a passive asset; and (ii) our PFIC status for any taxable year will depend on the composition
of our income and assets and the value of our assets from time to time (which may be determined, in part, by reference to the market price
of our Class A common shares, which could be volatile). Accordingly, there can be no assurance that we will not be a PFIC for any taxable
year. If we are a PFIC for any year during which a U.S. Holder holds Class A common shares, we would generally continue to be treated
as a PFIC with respect to it for all succeeding years during which it holds Class A common shares, even if we ceased to meet the threshold
requirements for PFIC status.

If we become a PFIC for any taxable year and any
of our subsidiaries or other companies in which we own or are treated as owning equity interests are also a PFIC (any such entity, a “Lower-tier
PFIC”), a U.S. Holder would be deemed to own a proportionate amount (by value) of the shares of each Lower-tier PFIC and would be
subject to U.S. federal income tax according to the rules described in the subsequent paragraph on (i) certain distributions by a Lower-tier
PFIC; and (ii) dispositions of shares of Lower-tier PFICs, in each case as if it held such shares directly, even though it will not have
received the proceeds