Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 119

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 119
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 Income Tax

According to the Enterprise
Income Tax Law of the PRC (the “ EIT Law”) promulgated on March 16, 2007, effective on January 1, 2008, amended on February
24, 2017 and December 29, 2018 and the Implementation Rules of Enterprise Income Tax Law of the PRC (the “ Implementation Rules”)
effective on January 1, 2008 and amended on April 23, 2019, a uniform income tax rate of 25% for all enterprises in the PRC (including
foreign-invested enterprises) and revoke many of the tax exemption, reduction and preferential treatments applicable to foreign-invested
enterprises since January 1, 2008.

Value-added Tax

All entities and individuals
engaged in the sales of goods, provision of processing, repairs and replacement services, and the importation of goods within the territory
of the PRC shall pay value-added tax (VAT) in accordance with the Provisional Regulations on Value-added Tax of the PRC (the “ Provisional
Regulations on VAT”) and its implementation rules. The Provisional Regulations on VAT was promulgated by the State Council on December
13, 1993 which became effective on January 1, 1994 and subsequently amended on November 10, 2008, February 6, 2016 and November 19, 2017.
Pursuant to the Provisional Regulations on VAT and its implementation rules, VAT payable is calculated as “output VAT” minus
“input VAT. “ The rate of VAT is 17% or 11% in certain limited circumstances depending on the product type.

Further to the Circular on
Comprehensively Promoting the Pilot Programme of the Collection of Value-added Tax in Lieu of Business Tax, the Ministry of Finance and
State Administration of Taxation published a Circular on Adjusting Value-added Tax Rates on April 4, 2018 to announce that a taxpayer
engages in a taxable sales activity for the VAT purpose or imports goods, the previous applicable tax rates 17% and 11% will be adjusted
to 16% and 10% respectively. This Circular became effective since May 1, 2018.

According to the Announcement
of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Relevant Policies for Deepening
Value-added Tax Reform implemented on April 1, 2019,