Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 203

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 203
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 Tax on
January 1, 2026. The Value-added Tax Law maintains the VAT rates set by the Announcement on Relevant Policies for Deepening Value-Added
Tax Reform, therefore no adjustments will be made to the current VAT rates.

Dividend Withholding Tax

Pursuant to the Enterprise
Income Tax Law and its implementation rules, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise
in China to its foreign enterprise investors are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction
of incorporation has a tax treaty with China that provides for a different withholding arrangement. Under the China-HK Taxation
Arrangement, income tax on dividends payable to a company resident in Hong Kong that holds more than a 25% equity interest in a
PRC resident enterprise may be reduced to a rate of 5%. In February 2018, the SAT issued the Announcement on Issues concerning Beneficial
Owners in Tax Treaties, or the Circular 9, effective on April 1, 2018, to replace the Circular of the State Administration
of Taxation on the Interpretation and the Determination of the Beneficial Owners in the Tax Treaties, effective from October 2009, and
the Announcement of State Administration of Taxation on Recognition of “Beneficial Owner” in Tax Treaties, effective on June 29,
2012. Circular 9 provides more flexible guidance to determine whether the applicant engages in substantive business activities. Furthermore,
the Administrative Measures for Non-Resident Taxpayer to Enjoy Treatments under Tax Treaties (the “SAT Circular 60”), which
became effective in November 2015, require that non-resident enterprises which satisfy the criteria for entitlement to tax treaty benefits
may, at the time of tax declaration or withholding declaration through a withholding agent, enjoy the tax treaty benefits, and be subject
to ongoing administration by the tax authorities. In the case where the non-resident enterprises do not apply to the withholding agent
to claim the tax treaty benefits, or the materials and the information stated in the relevant reports and statements provided to the
withholding agent do not satisfy the criteria for entitlement to tax treaty benefits, the withholding agent should withhold tax pursuant
to the provisions of the PRC tax laws. The SAT issued the Announcement of State Taxation Administration on Promulgation of the Administrative
Measures on Non-resident Taxpayers Enjoying Treaty Benefits (the “SAT Circular 35”) on