Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 106

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 106
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RC. Under the EIT Law and relevant implementing regulations, a uniform corporate income tax
rate of 25% is applicable. However, if non-resident enterprises have not formed permanent establishments or premises in the PRC, or if
they have formed permanent establishment institutions or premises in the PRC but there is no actual relationship between the relevant
income derived in the PRC and the established institutions or premises set up by them, the enterprise income tax is, in that case, set
at the rate of 10% for their income sourced from inside the PRC. Enterprises that are recognized as high and new technology enterprises
in accordance with the Notice of the Ministry of Science, the Ministry of Finance and the State Administration of Taxation on Amending
and Issuing the Administrative Measures for the Determination of High and New Tech Enterprises are entitled to enjoy the preferential
enterprise income tax rate of 15%. The validity period of the high and new technology enterprise qualification shall be three years from
the date of issuance of the certificate of high and new technology enterprise. The enterprise can reapply for such recognition as a high
and new technology enterprise before or after the previous certificate expires.

The Notice Regarding the Determination of Chinese-Controlled
Offshore Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of De Facto Management Bodies promulgated by the SAT on
April 22, 2009 and amended on January 29, 2014 sets out the standards and procedures for determining whether the “de facto management
body” of an enterprise registered outside of the PRC and controlled by PRC enterprises or PRC enterprise groups is located within
the PRC.

Value-added tax

The Provisional Regulations of the PRC on Value-added
tax (2017 Revision) were promulgated by the State Council on November 19, 2017. The Detailed Rules for the Implementation of the Provisional
Regulations of the PRC on Value-added tax (2011 Revision) were promulgated by the Ministry of Finance and the SAT on December 15, 2008,
which were subsequently amended on October 28, 2011 and came into effect on November 1, 2011, or collectively, the VAT Law. According
to the VAT Law, all enterprises and individuals engaged in the sale of goods, the provision of processing, repair and replacement services,
and the importation of goods within the territory of the PRC must pay value-added tax. For general VAT taxpayers selling services or