Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 52

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 52
---
 foreign private issuer in order to maintain a listing on a U. S. securities exchange.

There can be no assurance that we will not
be a PFIC for U. S. federal income tax purposes for any taxable year, which could result in adverse U. S. federal income tax consequences
to U. S. holders of our Ordinary Shares.

A non-U. S. corporation will
be a PFIC for any taxable year if either (i) at least 75% of its gross income for such year consists of certain types of “passive”
income, or (ii) at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is
attributable to assets that produce passive income or are held for the production of passive income (the “asset test”). Based
on our current and expected income and assets (taking into account the cash proceeds and our market capitalization following our initial
public offering), we do not presently expect to be a PFIC for the 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 fact-intensive inquiry made on an annual
basis that depends, in part, upon the composition of our income and assets. In addition, there can be no assurance that the Internal Revenue
Service (“ IRS”) will agree with our conclusion or that the IRS would not successfully challenge our position. Fluctuations
in the market price of our Ordinary Shares may cause us to become a PFIC for the current or subsequent taxable years because the value
of our assets for the purpose of the asset test may be determined by reference to the market price of our Ordinary Shares. 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 our initial public
offering. If we were to be or become a PFIC for any taxable year during which a U. S. holder holds our Ordinary Shares, certain adverse
U. S. federal income tax consequences could apply to such U. S. holder. See “ Material Tax Income Consideration - Material U. S.
Federal Income Tax Considerations for U. S. Holders - PFIC Consequences.”

We are an emerging growth company within
the meaning of the Securities Act and may take advantage of certain reduced reporting requirements.

We are an emerging growth
company, as defined in the JOBS