Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 313

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 313
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 ended 
 September 30, 
          2023 |
|:--------------------------|:----|:--|--------------:|:----|:--|--------------:|
| Deferred tax assets:      |     |   |               |     |   |               |
| Allowance for credit loss |     | $ |        91,073 |     | $ |        79,855 |
| Less: valuation allowance |     |   |             – |     |   |             – |
| Net deferred tax assets   |     | $ |        91,073 |     | $ |        79,855 |

Reconciliation of effective income tax rate is as follows for the year
ended

|                                        |     | September 30, 2024 |        |     | September 30, 2023 |        |
|:---------------------------------------|:----|:-------------------|:-------|:----|:-------------------|:-------|
| PRC statutory tax rate                 |     |                    | 25.0%  |     |                    | 25.0%  |
| Preferential tax rate reduction in PRC |     |                    | -12.5% |     |                    | -12.5% |
| Additional R&D deduction               |     |                    | -4.9%  |     |                    | -3.2%  |
| Others                                 |     |                    | 0.1%   |     |                    | –      |
| Effective tax rate                     |     |                    | 7.7%   |     |                    | 9.3%   |

Uncertain tax positions

The Company uses a more likely than not threshold
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the
impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit
by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.

Interest on non-payment of income taxes
under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory
threshold to avoid payment of penalties recognized, if any, will be classified as a component of the provisions for income taxes.
The tax returns of the Company’s Hong Kong and PRC subsidiaries are subject to examination by the relevant local tax
authorities.