Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 24

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 24
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 PRC at the applicable tax rate on taxable income. All
the PRC subsidiaries that are not entitled to any tax holiday and were subject to income tax at a rate of 25% for the nine months ended
September 30, 2025 and 2024. According to PRC tax regulations, the PRC net operating loss can generally carry forward for no longer
than five years starting from the year subsequent to the year in which the loss was incurred. Carry back of losses is not permitted. If
not utilized, the PRC net operating loss will expire in 2026.

The income tax expense was $nil and $2,797 for
the nine months ended September 30, 2025 and 2024, respectively, related primarily to the Company’s subsidiaries located outside
of the U.S.

Uncertain tax positions

The Company did not have any uncertain tax positions during the nine
months ended September 30, 2025 and 2024.

The Company files tax returns as prescribed by
the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by the
respective jurisdictions, where applicable. The statute of limitations for the tax returns varies by jurisdictions.

Our policy is to include interest and penalty
charges related to uncertain tax liabilities as necessary in the provision for income taxes. The Company has a liability for accrued interest
of $nil and $nil as of September 30, 2025 and 2024, respectively.

The statute of limitations for the Internal Revenue
Services to assess the income tax returns on a taxpayer expires three years from the due date of the profits tax return or the date on
which it was filed, whichever is later.

In accordance with the Hong Kong profits tax regulations,
a tax assessment by the IRD may be initiated within six years after the relevant year of assessment, but extendable to 10 years in the
case of potential wilful underpayment or evasion.

In accordance with PRC Tax Administration Law
on the Levying and Collection of Taxes, the PRC tax authorities generally have up to five years to assess underpaid tax plus penalties
and interest for PRC entities’ tax filings. In the case of tax evasion, which is not clearly defined in the law, there is no limitation
on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on the
above.

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| 12. | CH