Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 79

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 79
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.S. source gain or loss.

Passive Foreign Investment Company Status

Certain adverse U.S. federal
income tax consequences could apply to a U.S. Holder if we are treated as a PFIC for any taxable year during which U.S. Holders hold
our securities. A foreign (i.e., non-U.S.) corporation will be classified as a PFIC for U.S. federal income tax purposes if at least
75% of its gross income in a taxable year, including its pro rata share of the gross income of any entity in which it is considered to
own at least 25% of the interest by value, is passive income. Alternatively, a foreign corporation will be a PFIC if at least 50% of
its assets in a taxable year, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro
rata share of the assets of any entity in which it is considered to own at least 25% of the interest by value, are held for the production
of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties
derived from the active conduct of a trade or business) and gains from the disposition of passive assets.

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The determination of whether we are a PFIC is a fact-intensive determination
made on an annual basis applying principles and methodologies that in some circumstances are unclear and subject to varying interpretation.
Under the income test described above, our status as a PFIC depends on the composition of our income which will depend on the transactions
we enter into in the future and our corporate structure. The composition of our income and assets is also affected by the spending of
the cash we raise in any offering, including this offering. We do not currently expect to be a PFIC for U.S. federal income tax purposes,
but this conclusion is a factual determination made annually and, thus, is subject to change. Our U.S. counsel expresses no opinion with
respect to our PFIC status for any taxable year. We urge U.S. Holders to consult their own tax advisors regarding the possible application
of the PFIC rules in light of their individual circumstances.

Information Reporting and Backup Withholding

Certain U.S. Holders are
required to report information to the Internal Revenue Service relating to an interest in “specified foreign financial assets,”
including shares issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign