Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 237

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 237
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 China state regulations, the employees of the Group's subsidiaries which operate in Mainland China are required to participate in a central pension scheme operated by the local municipal government and government-sponsored housing funds. These subsidiaries are required to contribute a certain percentage of their payroll costs for those qualified urban employees to the central pension scheme as well as to housing funds. |

Employee benefit
expenses include remuneration payables to Directors and senior management as set out in Note 25(d).

| F-43 |

| 7. | INCOME TAX EXPENSE |

The Company is incorporated in the BVI
and conducts its primary business operations through its subsidiaries in the PRC. It also has intermediate holding companies in the BVI
and Hong Kong. Under the current laws of the BVI, the Company and its subsidiaries incorporated in the BVI are not subject to tax on income
or capital gains. The Hong Kong Profits Tax rate is 16.50%. The Company’s Hong Kong subsidiaries have both Hong Kong–sourced
and non-Hong Kong–sourced income. The latter is not subject to Hong Kong Profits Tax and the related expenses are non-tax-deductible.
For the Hong Kong–sourced income, no provision for Hong Kong Profits Tax was made as such operations sustained tax losses during
the years ended December 31, 2021, 2022 and 2023. Furthermore, there are no withholding taxes in Hong Kong on the remittance of dividends.

China

Under the law of the PRC on corporate
income tax and the Implementation Regulation of the Corporate Income Tax Law (collectively, the “CIT Law”), the Company’s
PRC subsidiaries are generally subject to PRC corporate income tax at the statutory rate of 25% on their respective estimated assessable
profits for the years ended December 31, 2021, 2022 and 2023.

Under the prevailing CIT Law and its
relevant regulations, any dividends paid by the Company’s PRC subsidiaries from their earnings derived after January 1, 2008 to
the Company’s Hong Kong subsidiaries are subject to PRC dividend withholding tax of 5% or 10%, depending on the applicability of
the Sino-Hong Kong tax treaty.

The current and
deferred components of income tax benefit are as follows:

| Schedule of current and deferred components of income tax expense |     | Year               
 Ended December 31, 
 2021               |        |   |     | 2022 |