Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 89

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4A
Chunk 89
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) issued by the Ministry of Finance and other relevant
PRC authorities, these services have been exempt from VAT. Sales of goods in connection with the provision of such services are subject
to a VAT rate of 13%.

Our revenue from educational consulting services
is subject to a VAT tax rate of 6%.

Withholding Tax on Dividends

Dividends paid by E-Home WFOE to our intermediary
holding company in Hong Kong will be subject to a withholding tax rate of 10%, unless the relevant Hong Kong entity satisfies all the
requirements under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation
and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and receives approval from the relevant tax authority. If
our Hong Kong subsidiary satisfies the requirements under the tax arrangement and receives approval from the relevant tax authority, then
the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at a reduced tax rate of 5%. See “ Risk Factors-Risks
Related to Doing Business in China-There are significant uncertainties under the PRC Enterprise Income Tax Law relating to the withholding
tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to
enjoy certain treaty benefits.”

Our Reportable Segments

As of June 30, 2025, our operations are organized
into four reportable segments: appliance installation and maintenance services, housekeeping services, senior care services, and educational
consulting services. Operating segments are reported in a manner consistent with the internal reporting provided to management for decision
making. These operating segments are reviewed, and strategic decisions are made on the basis of segmental profit margins.

Critical Accounting Policies

The preparation of consolidated financial statements
in conformity with U. S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and
expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes.
The SEC has defined a company’s critical accounting policies as the ones that are most important to the portrayal of the company’s
financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often
as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified the critical
accounting policies and judgments addressed below. We also have other key accounting policies, which involve the use of estimates,