Company: SOS
Filing Date: 2025-06-25
Form Type: F-3/A
Source: 0001213900-25-057886
Chunk: 41

Company: SOS Ltd
Filing Date: 2025-06-25
Form: F-3/A
Chunk 41
---
RC Enterprise Income Tax Law to pay income tax for any dividends we receive from our
subsidiaries in mainland China, or if our Hong Kong subsidiary is determined by PRC government authority as receiving benefits from reduced
income tax rate due to a structure or arrangement that is primarily tax-driven, it would materially and adversely affect the amount of
dividends, if any, we may pay to our shareholders.

If the PRC tax authorities determine that our Cayman Islands holding
company is a PRC resident enterprise for enterprise income tax purposes and unless a tax treaty or similar arrangement provides otherwise,
we may be required to withhold a 10% tax from dividends we pay to our shareholders that are non-resident enterprises, including the holders
of the ADSs. In addition, non-resident enterprise shareholders, including the ADS holders, may be subject to PRC tax at a rate of 10%
on gains realized on the sale or other disposition of ADSs or ordinary shares if such income is treated as sourced from within the PRC.
Furthermore, if we are deemed a PRC resident enterprise, dividends paid to our non-PRC individual shareholders, including the ADS holders,
and any gain realized on the transfer of ADSs or ordinary shares by such shareholders may be subject to PRC tax at a rate of 20% which
in the case of dividends may be withheld at source. Any such tax may reduce the returns on your investment in the ADSs.

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Risks Related to Doing Business in China

Uncertainties with respect to the PRC legal system could have a material adverse on us and the VIEs.

The PRC legal system is a civil law system
based on written statutes. Unlike the common law system, prior court decisions in a civil law system may be cited as reference but have
limited precedential value. Since 1979, newly introduced PRC laws and regulations have significantly enhanced the protections of interest
relating to foreign investments in mainland China. However, since these laws and regulations are relatively new and the PRC legal system
continues to evolve rapidly, the interpretations of such laws and regulations may not always be consistent, and enforcement of these laws
and regulations involves significant uncertainties, any of which could limit the available legal protections.

In addition, the PRC administrative and judicial
authorities have significant discretion in interpreting, implementing or enforcing statutory rules and contractual terms, and it may be
more difficult to predict the outcome of administrative and judicial proceedings and the