Company: BTBT
Filing Date: 2025-07-02
Form Type: S-8
Source: 0001213900-25-061020
Chunk: 108

Company: Bit Digital, Inc
Filing Date: 2025-07-02
Form: S-8
Chunk 108
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 date of this report, the Hong Kong subsidiaries
have not established any subsidiary or branch in mainland PRC and are not conducting any business operations in mainland PRC.

However, due to changes in laws, regulations or
policies, including how these laws, regulations or policies would be interpreted or implemented, the national laws applicable in Hong
Kong in the Basic Law might be revised in the future.

Therefore, we cannot assure you that we will not
be affected by the foregoing or relevant laws, regulations or policies in the future, if there are any changes to the foregoing laws,
regulations and policies, or if any new laws, regulations, and policies are published. We could not guarantee that the relevant laws,
regulations, or policies would not be applied retroactively, so we might face penalties, and our reputation and results of operations
could be materially and adversely affected.

Enhanced scrutiny over acquisition transactions by the PRC tax authorities may have a negative impact on the indirect transfer of equity in the past and potential acquisitions we may pursue in the future.

The PRC tax authorities have enhanced their scrutiny
over the direct or indirect transfer of certain taxable assets, including, in particular, equity interests in a PRC resident enterprise,
by a non-resident enterprise by promulgating and implementing SAT Circular 59 and Circular 698, which became effective in January 2008,
and a Circular 7 to replace some of the existing rules in Circular 698, which became effective in February 2015.

Under Circular 7, where a non-resident enterprise
conducts an “indirect transfer” by transferring the equity interests of a PRC “resident enterprise” indirectly
by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, may be subject
to PRC enterprise income tax if the indirect transfer is considered to be an abusive use of company structure without reasonable commercial
purposes. As a result, gains derived from such indirect transfer may be subject to PRC tax at a rate of up to 10%.

On October 17, 2017, the SAT issued the Announcement
of the State Administration of Taxation on Issues Concerning the Withholding of Nonresident Enterprise Income Tax at Source partly revised,
or SAT Circular 37, which came into effect on December 1, 2017. The SAT Circular 37 further clarifies the practice and procedure of the
withholding of non-resident enterprise income tax. SAT Circular 698 was repealed from the