Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 149

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 149
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 Islands,
PRC and U. S. federal income tax consequences of an investment in ADSs or Class A ordinary shares is based upon laws and relevant interpretations
thereof in effect as of the date of this annual report, all of which are subject to change. This summary does not deal with all possible
tax consequences relating to an investment in ADSs or Class A ordinary shares, such as the tax consequences under U. S. state and local
tax laws or under the tax laws of jurisdictions other than the Cayman Islands, the People’s Republic of China and the United States.

Cayman Islands Taxation

The Cayman Islands currently levies no taxes on
individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax
or estate duty.

Pursuant to the Tax Concessions Act of the Cayman
Islands, we have obtained an undertaking: (a) that no law which is enacted in the Cayman Islands imposing any tax to be levied on profits
or income or gains or appreciations shall apply to us or our operations; and (b) that the aforesaid tax or any tax in the nature of estate
duty or inheritance tax shall not be payable on the shares, debentures or other obligations of us. The undertaking is for a period of
twenty years from March 8, 2018.

Payments of dividends and capital in respect of
the shares of our company will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of
a dividend or capital to any holder of the shares, nor will gains derived from the disposal of the ordinary shares be subject to Cayman
Islands income or corporation tax.

Certain stamp duties may be applicable, from time
to time, on certain instruments executed in or brought into the Cayman Islands. No stamp duty is payable in the Cayman Islands on transfers
of shares of Cayman Islands companies except those which hold interests in land in the Cayman Islands.

People’s Republic of China Taxation

Under the PRC Enterprise Income Tax Law and its
implementation rules, an enterprise established outside of the PRC with a “de facto management body” within the PRC is considered
a resident enterprise and will be subject to the enterprise income tax at the rate of 25% on its global income. The implementation rules
define the term “de facto management body” as the body that exercises full and substantial control over and