Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 128

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 128
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16.5% on its taxable income generated
from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not
subject to any Hong Kong withholding tax. The Company did not make any provision for Hong Kong profit tax as there were no assessable
profits derived from or earned in Hong Kong since inception.

PRC

The Company’s PRC
subsidiaries are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated
at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect
thereof. Under the Enterprise Income Tax Laws of the PRC (the “ EIT Laws”), domestic enterprises and Foreign Investment Enterprises
(the “ FIE”) are usually subject to a unified25% enterprise income tax rate while preferential tax rates, tax holidays and
even tax exemption may be granted on case-by-case basis. For the years ended December 31, 2024, 2023 and 2022, there is no preferential
tax rate.

  The                                                     

                            2024        2023        2022  
 ──────────────────────────────────────────────────────────
  Income tax expense      $1,948      $3,250      $2,924  
  Total                   $1,948      $3,250      $2,924  

There are no deferred tax assets due to full valuation allowance for
the years ended December 31, 2024, 2023 and 2022.

  ii)      The                                                                                  

The following table reconciles the China statutory
rates to the Company’s effective tax rate for the years ended December 31, 2024, 2023 and 2022:

                                              2024      2023      2022  
 ────────────────────────────────────────────────────────────────────────
  PRC statutory income tax rate               25.0      25.0      25.0  
  Effect of different tax jurisdiction      ( 29.7       1.0       0.1  
  Non-deductible expenses (1)                ( 5.4       0.6       0.6  
  Change in valuation allowance             ( 36.6       1.4       0.8  
  Effective income tax rate                 ( 46.7      28.0      26