Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 100

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 100
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 enterprise for enterprise income tax purposes, we may be subject to PRC enterprise income on our worldwide income at
the rate of 25% and may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident
enterprises. Such 10% tax rate could be reduced by applicable tax treaties or similar arrangements between mainland China and the jurisdiction
of our shareholders. For example, for shareholders eligible for the benefits of the tax treaty between mainland China and Hong Kong,
the tax rate is reduced to 5% for dividends if relevant conditions are met. In addition, non-resident enterprise shareholders may be subject
to a 10% PRC tax on gains realized on the sale or other disposition of ordinary shares, if such income is treated as sourced from within
the PRC. It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained
by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to
such dividends or gains, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax treaty.
However, it is also unclear whether non-PRC shareholders of the Company would be able to claim the benefits of any tax treaties between
their country of tax residence and the PRC in the event that the Company is treated as a PRC resident enterprise.

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Provided that our BVI holding company, 3e Network, is not deemed to
be a PRC resident enterprise, our shareholders who are not PRC residents will not be subject to PRC income tax on dividends distributed
by us or gains realized from the sale or other disposition of our Class A Ordinary Shares. However, under Circular 7, where a non-resident
enterprise conducts an “indirect transfer” by transferring taxable assets, including, in particular, equity interests in a
PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise,
being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant tax authority
such indirect transfer. Using a “substance over form” principle, the PRC tax authority may disregard the existence of the
overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing