Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 298

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 298
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 between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s
subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

Income taxes

Cayman Islands

The Company was incorporated in the Cayman Islands
and is not subject to tax on income or capital gains under the laws of Cayman Islands. Additionally, the Cayman Islands does not impose
a withholding tax on payments of dividends to shareholders.

| F-16 |

BVI

Zerolimit Digital Technology Limited, Zerolimit
Excellence Limited, Zerolimit Power Limited and Zerolimit Virtue Limited are incorporated in the British Virgin Islands and are not subject
to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities
to their shareholders, no British Virgin Islands withholding tax will be imposed.

Hong Kong

Zerolimit Technology Holding Co., Ltd. is incorporated
in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted
in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions
for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax
law, Zerolimit Technology Holding Co., Ltd. is exempted from income tax on its foreign-derived income and there are no withholding taxes
in Hong Kong on remittance of dividends.

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. The PRC Enterprise
Income Tax Law (“EIT Law”), which became effective on January 1, 2008, applies a uniform enterprise income tax (“EIT”)
rate of 25% to both foreign-invested enterprises (“FIEs”) and domestic enterprises, while preferential tax rates, tax holidays
and even tax exemption may be granted on case-by-case basis. For the years ended September 30, 2023 and 2022, the company is within the
tax exemption period. The Company enjoys a preferential tax rate at 12.5%