Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 255

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 255
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territory of the PRC are required to pay value added tax, or VAT, instead of business tax.

According to the Circular
36, our mainland China subsidiary, the VIE and its subsidiary are subject to VAT, at a rate of 6% to 17% on proceeds received from customers
and are entitled to a refund for VAT already paid or borne on the goods purchased by it and utilized in the production of goods or provisions
of services that have generated the gross sales proceeds.

According to the Circular
of the Ministry of Finance and the SAT on Adjusting Value-added Tax Rates, promulgated on April 4, 2018 and effective since May 1,
2018, where a taxpayer engages in a taxable sales activity for the value-added tax purpose or imports goods, the previous applicable
17% tax rates are lowered to 16%.

According to the Circular
on Policies to Deepen Value-added Tax Reform, promulgated on March 20, 2019 and effective since April 1, 2019, where a taxpayer
engages in a taxable sales activity for the value-added tax purpose or imports goods, the previous applicable 16% and 10% tax rates are
lowered to 13% and 9% respectively.

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Hong Kong Taxation

Inland Revenue Ordinance (Chapter 112 of the Laws of Hong Kong)

Under the Inland Revenue
Ordinance, where an employer commences to employ in Hong Kong an individual who is or is likely to be chargeable to tax, or any
married person, the employer shall give a written notice to the Commissioner of Inland Revenue not later than three months after
the date of commencement of such employment. Where an employer ceases or is about to cease to employ in Hong Kong an individual
who is or is likely to be chargeable to tax, or any married person, the employer shall give a written notice to the Commissioner of Inland
Revenue not later than one month before such individual ceases to be employed in Hong Kong.

Tax on dividends

Under the current practice
of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by HK Zerolimit
to the Company.

Capital gains and profit tax

The Inland Revenue Ordinance
provides, among other things, that profits tax shall be charged on every person carrying on a trade, profession or business in Hong Kong
in respect of his or her assessable profits arising