Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 104

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 4
Chunk 104
---
 foreign investors are no longer required to obtain approval from the SAFE to re-invest in the PRC by
using income legally generated from the PRC. No approval from the SAFE is required for opening the foreign exchange accounts, payment
into certain accounts, settlement of the foreign exchange and for the purchase and external payment of foreign exchange. Also, the transfer
of foreign exchange in the PRC under a direct investment account is no longer subject to approval by the SAFE. In addition, the foreign-invested
enterprises are permitted to remit funds to their offshore parent companies.

According
to the Notice on Further Simplifying and Improving the Policies of Foreign Exchange Administration Applicable to Direct Investment, verification,
and approval of foreign exchange registration under domestic direct investment is abolished. The banks shall, in accordance with relevant
guidance, directly examine and handle foreign exchange registration under domestic direct investment. Relevant entities may, at their
discretion, choose the banks in their respective places of registration to go through foreign exchange registration of direct investment,
and may handle subsequent formalities for opening relevant accounts, fund exchange and other services (including the outflow or inflow
of profits and dividends) under direct investment only after foreign exchange registration of direct investment is completed.

Laws
and Regulations Relating to Taxation in the PRC

Enterprise
Income Tax.

Withholding
income tax and international tax treaties.

Pursuant
to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for Avoidance of Double Taxation and Prevention
of Tax Evasion, the applicable withholding income tax rate for any dividends declared by a Chinese company is 5% for a shareholder being
a Hong Kong resident holding at least 25% interest in its registered capital, or 10% for a shareholder being a Hong Kong resident holding
less than 25% interest in its registered capital.

According
to the Administrative Measures for Tax Convention Treatment for Non-resident Taxpayers, any non-resident taxpayer meeting conditions
for enjoying the convention treatment may be entitled to the convention treatment when filing a tax return or making a withholding declaration
through a withholding agent, subject to the subsequent administration by the tax authorities. The term “non-resident taxpayers”
refers to the taxpayers other than the PRC tax residents under the Provisions of domestic tax laws or conventions on the avoidance of
double taxation signed by the government of the People’s Republic of China with foreign countries (including the tax arrangements
signed with the Hong Kong Special Administrative Region and the