Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 65

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 10
Chunk 65
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 S. federal income tax rules that apply generally if we are treated
as a PFIC are discussed below under “ - Passive Foreign Investment Company Rules.”

Dividends

Any cash distributions
paid on our Ordinary Shares out of our current or accumulated earnings and profits, as determined under U. S. federal income tax principles,
will generally be includible in the gross income of a U. S. Holder as dividend income on the day actually or constructively received by
the U. S. Holder. Because we do not intend to determine our earnings and profits on the basis of U. S. federal income tax principles, any
distribution we pay will generally be treated as a “dividend” for U. S. federal income tax purposes. Dividends received on
our Ordinary Shares will not be eligible for the dividends received deduction allowed to corporations in respect of dividends-received
from U. S. corporations.

Individuals and other
non-corporate U. S. Holders may be subject to tax on any such dividends at the lower capital gain tax rate applicable to “qualified
dividend income,” provided that certain conditions are satisfied, including that (i) our Ordinary Shares on which the dividends
are paid are readily tradable on an established securities market in the United States, (ii) we are neither a PFIC nor treated as such
with respect to a U. S. Holder for the taxable year in which the dividend is paid and the preceding taxable year, and (iii) certain holding
period requirements are met. We intend to list the Ordinary Shares on Nasdaq Capital Market. Provided that this listing is approved, we
believe that the ordinary should generally be considered to be readily tradeable on an established securities market in the United States.
There can be no assurance that the Ordinary Shares will continue to be considered readily tradable on an established securities market
in later years. U. S. Holders are urged to consult their tax advisors regarding the availability of the lower rate for dividends paid with
respect to the Ordinary Shares.

For U. S. foreign tax
credit purposes, dividends paid on our Ordinary Shares will generally be treated as income from foreign sources and will generally constitute
passive category income. The rules governing the foreign tax credit are complex and U. S. Holders are urged to consult their tax advisors
regarding the availability of the foreign tax credit under their particular circumstances.

Sale or Other Disposition

A U. S. Holder will generally
recognize gain or loss upon the