Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 51

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 51
---
 the EIT Law, we cannot assure you that such dividends will not be subject to a
10% withholding tax, as the PRC foreign exchange control authorities, which enforce the withholding tax on dividends, and the PRC tax
authorities, have not yet issued guidance with respect to the processing of outbound remittances to entities that are not controlled by
any mainland China enterprise or enterprise group and treated as resident enterprises for mainland China enterprise income tax purposes.

Finally, dividends we pay to our non-mainland
China enterprise shareholders and gains derived by our non-mainland China shareholders from the sale of our shares may become subject
to a 10% mainland China withholding tax. In addition, future guidance may extend the withholding tax to dividends we pay to our non-mainland
China individual shareholders and gains derived by such shareholders from transferring our shares. In addition to the uncertainty in how
the new “resident enterprise” classification could apply, it is also possible that the rules may change in the future, possibly
with retroactive effect. If mainland China income tax were imposed on gains realized through the transfer of our ADSs or ordinary shares
or on dividends paid to our non-resident investors, the value of the investment in our ADSs or ordinary shares may be materially and adversely
affected. Furthermore, our ADS holders whose jurisdictions of residence have tax treaties or arrangements with mainland China may not
qualify for benefits under such tax treaties or arrangements.

<div align='center'>S-29</div>

We face uncertainty regarding the mainland China tax reporting obligations and consequences for certain indirect transfers of our operating company’s equity interests. Enhanced scrutiny over acquisition transactions by the PRC tax authorities may have a negative impact on potential acquisitions we may pursue in the future.

In connection with the EIT Law, the Ministry of
Finance and the State Administration of Taxation jointly issued Circular 59 in April 2009, which became effective retroactively
on January 1, 2008. On February 3, 2015, the State Administration of Taxation issued Public Notice 2015 No.7, or Public Notice
7. Under Public Notice 7, where a non-resident enterprise conducts an “indirect transfer” by transferring the equity interests
in a mainland China “resident enterprise” or other taxable assets indirectly by disposing of the equity interests in an overseas
holding company, the non-resident enterprise, being the transferor, may be subject to mainland China enterprise income tax, if the indirect
transfer is considered to be an