Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 32

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 32
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 See “ Taxation - People’s Republic of China Taxation.” However, the
tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the
interpretation of the term “de facto management body.” As some of our management members are based in or frequently travel
to China, it remains unclear how the tax residency rule will apply to our case. If the PRC tax authorities determine that we or any of
our subsidiaries outside of China is a PRC resident enterprise for PRC enterprise income tax purposes, then we or such subsidiary could
be subject to PRC tax at a rate of 25% on its world-wide income, which could materially reduce our net income. In addition, we will also
be subject to PRC enterprise income tax reporting obligations. Furthermore, if the PRC tax authorities determine that we are a PRC resident
enterprise for enterprise income tax purposes, gains realized on the sale or other disposition of our ordinary shares may be subject to
PRC tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC individuals (in each case, subject to the provisions
of any applicable tax treaty), if such gains are deemed to be from PRC sources. It is unclear whether non-PRC shareholders of our 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 we are treated
as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our ordinary shares.

Regulatory bodies of the United States may be
limited in their ability to conduct investigations or inspections of our operations in China.

From time to time, the Company may receive requests
from certain US agencies to investigate or inspect the Company’s operations, or to otherwise provide information. While the Company
will be compliant with these requests from these regulators, there is no guarantee that such requests will be honored by those entities
who provide services to us or with whom we associate, especially as those entities are located in China. Furthermore, an on-site inspection
of our facilities in China by any of these regulators may be limited or entirely prohibited. Such inspections, though permitted by the
Company and its affiliates, are subject to the unpredictability of the Chinese enforcers, and may therefore be impossible to facilitate.
According to Article 177 of the PRC Securities Law which became effective in March 2020