Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 49

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 49
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 are made or are subject to approval by organizations or personnel
in China; (3) the enterprise’s primary assets, accounting books and records, company seals, and board and shareholder resolutions,
are located or maintained in China; and (4) at least 50% of voting board members or senior executives habitually reside in China.

The tax resident status of
an enterprise is subject to applicable PRC laws and regulations, and the interpretation of the term “de facto management body”
may be subject to adjustment in the future. If we or any of our subsidiaries outside of China is deemed as a PRC resident enterprise
for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25% on their worldwide income, which could materially
reduce their net income, and they will be required to comply with PRC enterprise income tax reporting obligations. In addition, non-resident enterprise
shareholders (including the holders of our securities) may be subject to PRC tax at a rate of 10% on gains realized on the sale or other
disposition of our securities, if such income is treated as sourced from within China. Furthermore, if we are deemed a PRC resident enterprise,
dividends payable to its non-PRC individual shareholders (including its securities holders) and any gain realized on the transfer
of our securities by such shareholders may be subject to PRC tax at a rate of 10% in the case of non-PRC enterprises or a rate
of 20% in the case of non-PRC individuals unless a reduced rate is available under an applicable tax treaty. It is unclear
whether non-PRC shareholders of us would be able to claim the benefits of any tax treaties between their country of tax residence
and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in
our securities.

Furthermore, taxation laws,
rules and regulations may evolve, which may impose stricter tax requirements or higher tax rates on us. Any of such changes could materially
and adversely affect our business, financial condition and results of operations.

Our shareholders face uncertainties with
respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.

On February 3, 2015,
the State Administration of Taxation issued the Circular on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC
Resident Enterprises (“ Circular 7”), which replaced or