Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 52

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 52
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, 2023 was mainly due to sales representatives were all resigned in 2022.

Other income (expense), net

For the years ended December 31, 2022
and 2023, total other expense, net was US$1,005 and US$14,798, respectively. The other income (expenses) mainly represented the interest
income and investment (loss) gain for investment, interest expense on bank borrowings and government subsidies. Increase in other expense,
net is mainly due to the decrease in other income from government subsidies received pursuant to the Employment Support Scheme (“ ESS”)
under the Anti-epidemic Fund from the Hong Kong government by US$12,259 or 88.9% from US$13,792 for year ended December 31, 2022
to US$1,533 for year ended December 31, 2023.

Income tax

We are subject to income tax on an entity basis
on profit arising in or derived from the jurisdiction in which members of our Group domicile or operate.

Cayman Islands

The Cayman Islands currently levy no taxes on
individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax
or estate duty. There are no other taxes likely to be material to the Company levied by the Government of the Cayman Islands save for
certain stamp duties which may be applicable, from time to time, on certain instruments.

BVI

Victory Hero is incorporated in the BVI and is
not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their
shareholders, no BVI withholding tax will be imposed.

Hong Kong

Wching HK is incorporated in Hong Kong and
is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance
with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. From year of assessment of 2019/2020 onwards,
Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000 (approximately US$255,470), and 16.5% on any part
of assessable profits over HK$2,000,000 (approximately US$255,470). Under Hong Kong tax law, the above-mentioned Hong Kong company
is exempted from income tax on its