Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 140

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 140
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 under Circular 81 and other relevant tax rules and regulations and obtains the approvals as required under the
Administrative Measures. However, according to Circular 81, if the relevant tax authorities consider the transactions or arrangements
we have are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding
tax in the future.

Hong Kong Taxation

The taxation of income and capital gains of holders
of ordinary shares is subject to the laws and practices of Hong Kong and of jurisdictions in which holders of ordinary shares are resident
or otherwise subject to tax. The following summary of certain relevant taxation provisions under Hong Kong law is based on current law
and practice, is subject to changes therein and does not constitute legal or tax advice. The discussion does not deal with all possible
tax consequences relating to an investment in the ordinary shares. Accordingly, each prospective investor (particularly those subject
to special tax rules, such as banks, dealers, insurance companies, tax-exempt entities and holders of 10% or more of our voting capital
stock) should consult its own tax advisor regarding the tax consequences of an investment in the ordinary shares. The discussion is based
upon laws and relevant interpretations thereof in effect as of the date of this report, all of which are subject to change. There is no
reciprocal tax treaty in effect between Hong Kong and the United States.

Tax on Dividends

Under the current practices of the Hong Kong Inland
Revenue Department, no tax is payable in Hong Kong in respect of dividends paid by us as a company incorporated in Cayman Islands.

Profits Tax

No tax is imposed in Hong Kong in respect of capital
gains from the sale of property (such as the ordinary shares). Trading gains from the sale of property by persons carrying on a trade,
profession or business in Hong Kong where such gains are derived from or arise in Hong Kong from such trade, profession or business will
be chargeable to Hong Kong profits tax, which is currently imposed at the rate of 16.5% and 15% on corporations and unincorporated businesses,
respectively, and at a maximum rate of 15% on individuals. Liability for Hong Kong profits tax may thus arise in respect of trading gains
from sales of ordinary shares realized by persons carrying on a business or trading or dealing in securities in Hong Kong.

Stamp Duty

Hong Kong stamp duty, currently charged at the rate
of HK$1.3 per HK$1,000 or part thereof on