Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 201

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 201
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 and management of the enterprise perform their duties are mainly located within the territory of China; (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 China;
(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 China; and (iv) one half (or more) of the directors or senior management
staff having the right to vote habitually reside within the territory of China.

We
believe that we do not meet some of the conditions outlined in the immediately preceding paragraph. For example, as a holding company,
the key assets and records of Company, including the resolutions and meeting minutes of our board of directors and the resolutions and
meeting minutes of our shareholders, are located and maintained outside the PRC. In addition, we are not aware of any offshore holding
companies with a corporate structure similar to ours that has been deemed a PRC “resident enterprise” by the PRC tax authorities.
Accordingly, we believe that Company and its offshore subsidiaries should not be treated as a “resident enterprise” for PRC
tax purposes if the criteria for “de facto management body” as set forth in SAT Notice 82 were deemed applicable to us. However,
as the tax residency status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect
to the interpretation of the term “de facto management body” as applicable to our offshore entities, we will continue to
monitor our tax status. We confirm that, as of the date of this report, none of us and our PRC subsidiary (i) has been investigated,
claimed or penalized for any PRC tax non-compliance or (ii) is currently subject to any outstanding notice from any PRC tax authority
assessing any tax deficiency against or imposing any penalty on us or any of our PRC subsidiary in connection with any payment or non-payment
of PRC taxes.

The
implementation rules of the EIT law provides that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if
gains are realized from transferring equity interests of enterprises domiciled in the PRC, then such dividends or gains are treated as
China-sourced income. It is not clear how