Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 7

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 7
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 foreign currencies for current account transactions. For our Hong Kong subsidiaries,
our subsidiary in British Virgin Islands and the holding company (“ Non-PRC Entities”), there is no restrictions on foreign
exchange for such entities and they are able to transfer cash among these entities, across borders and to US investors. Also, there is
no restrictions and limitations on the abilities of Non-PRC Entities to distribute earnings from their businesses, including from subsidiaries
to the parent company or from the holding company to the U. S. investors as well as the abilities to settle amounts owed.

We are a holding company, and we rely on dividends
and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds necessary to pay
dividends and other cash distributions to our shareholders and service any debt we may incur. If any of our subsidiaries incurs debt on
its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us. Current PRC regulations permit our WFOE to pay dividends to the Company only out of its accumulated profits, if any, determined
in accordance with Chinese accounting standards and regulations. In addition, our subsidiaries, VIE and its subsidiaries in China are
required to set aside at least 10% of their after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches
50% of its registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund
the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although
the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained
earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation. In
addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable
to dividends payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC
central government and the governments of other countries or regions where the non-PRC resident enterprises are tax resident. Pursuant
to the tax agreement between mainland China and the Hong Kong Special Administrative Region, the withholding tax rate in respect to the
payment of dividends by a PRC enterprise to a Hong Kong enterprise may be