Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 192

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 192
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 to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it
is more likely than not that some portion or all of the deferred tax assets will not be utilized. Current income taxes are provided for
in accordance with the laws of the relevant tax authorities.

An uncertain tax position
is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination,
with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely
of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
No penalties and interest were incurred related to underpayment of income tax for the years ended March 31, 2025, 2024, and 2023.

The Company recognizes interest
and penalties related to unrecognized tax benefits, if any, on the other expense line in the accompanying consolidated statement of income.
Accrued interest and penalties are included on the other payables and accrued liabilities line in the consolidated balance sheets.

The Company conducts a
significant portion of its business activities in Singapore, Malaysia, Hong Kong, and the People’s Republic of China
(“PRC”) and is subject to taxation in these jurisdictions. As a result of these activities, the Company’s
subsidiaries file separate tax returns that are subject to examination by the respective foreign tax authorities. As of March 31,
2025, the tax returns for the Company’s Singapore entities for the years 2022 through 2025 remain open for statutory
examination by the Singapore tax authorities. Similarly, the tax returns for the Company’s Hong Kong entities for the years
2020 through 2025 remain open for examination by the Hong Kong tax authorities. The tax returns for the Company’s Malaysia
entity for the years 2021 through 2025 also remain open for examination by the Malaysian tax authorities. In addition, the tax return for the Company’s PRC entity for the year 2024 remains open for statutory
examination by the PRC tax authorities.

The Company incurred debt issuance costs in connection with the issuance of convertible notes described in Note
16. As the Company has elected to account for the convertible notes at fair value under the fair value option, all related debt issuance
costs are expensed immediately in the period incurred.

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GCL GLOBAL HOLDINGS LTD