Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 82

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4
Chunk 82
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of Taxation issued the Bulletin on Issues Concerning the Withholding of Non-PRC Resident Enterprise Income Tax at Source, or Bulletin
37, which replaced the Notice on Strengthening Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises
issued by the State Administration of Taxation on December 10, 2009, and partially replaced and supplemented rules under the Bulletin
on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7, issued by the State
Administration of Taxation on February 3, 2015. Under Bulletin 7, an “indirect transfer” of assets, including equity interests
in a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer of PRC taxable
assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC
enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax. In respect
of an indirect offshore transfer of assets of a PRC establishment, the relevant gain is to be regarded as effectively connected with the
PRC establishment and therefore included in its enterprise income tax filing, and would consequently be subject to PRC enterprise income
tax at a rate of 25%. Where the underlying transfer relates to the immoveable properties in China or to equity investments in a PRC resident
enterprise, which is not effectively connected to a PRC establishment of a non-resident enterprise, a PRC enterprise income tax at 10%
would apply, subject to available preferential tax treatment under applicable tax treaties or similar arrangements, and the party who
is obligated to make the transfer payments has the withholding obligation. Pursuant to Bulletin 37, the withholding party shall declare
and pay the withheld tax to the competent tax authority in the place where such withholding party is located within seven days from the
date of occurrence of the withholding obligation. Neither Bulletin 37 nor Bulletin 7 applies to transactions of sale of shares by investors
through a public stock exchange where such shares were acquired from a transaction through a public stock exchange. See “ Risk Factors-Risks
Related to Doing Business in China-We and our existing shareholders face uncertainties with respect to indirect transfers of equity interests
in PRC resident enterprises or other assets attributed to a Chinese establishment of a non-Chinese company, or immovable properties located
in China