Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 205

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 205
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Furthermore,
pursuant to the Notice of the SAT on Issues Relating to the Implementation of Dividend Clauses in Tax Treaties (Guo Shui Han [2009] No.81),
which was promulgated and effective on February 20, 2009, all of the following requirements should be satisfied where a fiscal resident
of the other party to the tax agreement needs to be entitled to such tax agreement treatment as being taxed at a tax rate specified in
the tax agreement for the dividends paid to it by a PRC resident company: (1) such a fiscal resident who obtains dividends should be
a company as provided in the tax agreement; (2) owner’s equity interests and voting shares of the PRC resident company directly
owned by such a fiscal resident reaches a specified percentage; and (3) the equity interests of the PRC resident company directly owned
by such a fiscal resident, at any time during the 12 months prior to the acquisition of the dividends, reaches a percentage specified
in the tax agreement.

In
addition, according to the Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits promulgated by the SAT on October
14, 2019 and became effective on January 1, 2020, non-resident taxpayers claiming treaty benefits shall adhere to the principle of “self-assessment,
claiming benefits, retention of the relevant materials for future inspection.” Where a non-resident taxpayer self-assesses and
concludes that it satisfies the criteria for claiming treaty benefits, it may enjoy treaty benefits at the time of tax declaration or
withholding. However such non-resident taxpayers shall retain relevant tax-reporting materials pursuant to the provisions of these Measures
for potential future inspection, and accept follow-up administration by relevant tax authorities.

As
of the date of this report, when considered as a non-PRC resident investor, which is much more likely to happen than not, Galaxy Payroll
(China) shall be subject to the dividend withholding tax at the rate of 10%. Upon identified as the Hong Kong resident enterprise stipulated
by the Double Tax Avoidance Arrangement and other applicable laws, the withholding tax may be reduced to 5%.

Hong
Kong Taxation

Our
subsidiaries incorporated in Hong Kong were subject to 16.5% Hong Kong profit tax on their taxable income generated from operations in
Hong Kong before the tax year which is from April 1, 2018 to March 31, 201