Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 238

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 238
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 subject to PRC withholding tax at a rate of 10%, unless any such foreign investor’s
jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption.

Under the EIT Law, an enterprise established outside of the PRC with
a “de facto management body” within the PRC is considered a “resident enterprise,” which means that it is treated
in a manner similar to a PRC enterprise for enterprise income tax purposes. Although the implementation rules of the EIT Law define “de
facto management body” as a managing body that actually, comprehensively manage and control the production and operation, staff,
accounting, property, and other aspects of an enterprise, the only official guidance for this definition currently available is set forth
in SAT Notice 82, which was promulgated on April 22, 2009 and became effective retroactively on January 1, 2008. It provides guidance
on the determination of the tax residence status of a Chinese-controlled offshore incorporated enterprise, defined as an enterprise that
is incorporated under the laws of a foreign country or territory and that has a PRC enterprise or enterprise group as its primary controlling
shareholder.

According to SAT Notice 82, a Chinese-controlled
offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a “de facto management body” in
the PRC and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the
places where senior management and senior management departments that are responsible for daily production, operation and management of
the enterprise perform their duties are mainly located within the territory of the PRC; (ii) financial decisions (such as money borrowing,
lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided
or need to be decided by organizations or persons located within the territory of the PRC; (iii) main property, accounting books,
corporate seal, the board of directors and files of the minutes of shareholders’ meetings of the enterprise are located or preserved
within the territory of the PRC; and (iv) one half (or more) of the directors or senior management staff having the right to vote
habitually reside within the territory of the PRC.

We believe that we do not meet some of the conditions
outlined in the immediately preceding paragraph. For example, as a holding company,