Company: AEHL
Filing Date: 2025-08-05
Form Type: 20-F/A
Source: 0001641172-25-022290
Chunk: 115

Company: Antelope Enterprise Holdings Ltd
Filing Date: 2025-08-05
Form: 20-F/A
Chunk 115
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 on Indirect Transfer of Properties by Non-tax
Resident Enterprise, or Public Notice 7. Public Notice 7 has introduced a new tax regime that is significantly different from that under
Circular 698. Public Notice 7 extends its tax jurisdiction to not only indirect transfers set forth under Circular 698 but also transactions
involving transfer of other taxable assets, through the offshore transfer of a foreign intermediate holding company. In addition, Public
Notice 7 provides clearer criteria the Circular 698 on how to assess reasonable commercial purposes and has introduced safe harbors for
internal group restructurings and the purchase and sale of equity through a public securities market. Public Notice 7 also brings challenges
to both the foreign transferor and transferee (or other person who is obligated to pay for the transfer) of the taxable assets. Where
a non-resident enterprise conducts an “indirect transfer” by transferring the taxable assets indirectly by disposing of the
equity interests of an overseas holding company, the non-resident enterprise being the transferor, or the transferee, or the PRC entity
which directly owned the taxable assets may report to the relevant tax authority such indirect transfer. Using a “substance over
form” principle, the PRC tax authority may re-characterize such indirect transfer as a direct transfer of the equity interests in
the PRC tax resident enterprise and other properties in China. As a result, gains derived from such indirect transfer may be subject to
PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable
taxes, currently at a rate of up to 10% for the transfer of equity interests in a PRC resident enterprise. Both the transferor and the
transferee may be subject to penalties under PRC tax laws if transferee fails to withhold the taxes and the transferor fails to pay the
taxes.

We face uncertainties with respect
to the reporting and consequences of private equity financing transactions, share exchange or other transactions involving the transfer
of shares in our company by investors that are non-PRC resident enterprises, or sale or purchase of shares in other non-PRC resident companies
or other taxable assets by us. Our company and other non-resident enterprises in our group may be subject to filing obligations or being
taxed if our company and other non-resident enterprises in our group are transferors in such transactions, and may be subject to withholding
obligations if our