Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 199

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 199
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 Law of the PRC promulgated by the State
Council in December 2007 and amended in April 2019 and December 2024, other than a few exceptions, the income tax rate
for both domestic enterprises and foreign-invested enterprises is 25%. Enterprises are classified as either “resident
enterprises” or “non-resident enterprises”. Besides enterprises established within the PRC, enterprises
established outside China whose “de facto management bodies” are located in China are considered “resident
enterprises” and subject to the uniform 25% enterprise income tax rate for their global income. A non-resident enterprise
refers to an entity established under foreign law whose “de facto management bodies” are not within the PRC but which
have an establishment or place of business in the PRC, or which do not have an establishment or place of business in the PRC but
have income sourced within the PRC. An income tax rate of 10% will normally be applicable to dividends declared to non-PRC resident
enterprise investors that do not have an establishment or place of business in the PRC, or that have such establishment or place of
business but the relevant income is not effectively connected with the establishment or place of business, to the extent such
dividends are derived from sources within the PRC.

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In 2009, the State Administration
of Taxation, or the SAT, issued the Circular of the State Administration of Taxation on Issues Relating to Identification of PRC-Controlled
Overseas Registered Enterprises as Resident Enterprises in accordance with the De Facto Standards of Organizational Management, or SAT
Circular 82, which provides certain specific criteria for determining whether the “de facto management body” of a PRC-controlled
enterprise that is incorporated offshore is located in China. Although this circular only applies to offshore enterprises controlled
by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in SAT Circular
82 may reflect the SAT’s general position on how the “de facto management body” text should be applied in determining
the tax resident status of all offshore enterprises. According to SAT Circular 82, an offshore incorporated enterprise controlled by
a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its “de facto management
body” in China and will be subject to the PRC enterprise income tax on its global income only if all