Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 42

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 42
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 to pay VAT, on
the value added during the course of the sale of goods or provision of services. Unless otherwise specified, the applicable VAT rate for
the sale or importation of goods and provision of processing, repair and replacing services is 17%. On April 4, 2018, the Ministry
of Finance and the State Administration of Taxation issued the Notice on Adjustment of VAT Rates, which came into effect on May 1,
2018. According to the abovementioned notice, the taxable goods previously subject to VAT rates of 17% and 11%, respectively, become subject
to lower VAT rates of 16% and 10%, respectively, starting from May 1, 2018. Furthermore, according to the Announcement on Relevant
Policies for Deepening Value-added Tax Reform jointly promulgated by the Ministry of Finance, the State Administration of Taxation and
the General Administration of Customs, which became effective on April 1, 2019, the taxable goods previously subject to VAT rates
of 16% and 10%, respectively, become subject to lower VAT rates of 13% and 9%, respectively, starting from April 1, 2019.

The SAT and the MOF jointly promulgated the Circular
on Comprehensively Promoting the Pilot Program of the Collection of Valued-added Tax in lieu of Business Taxon March 23, 2016, which
became effective on 1 May 2016. Pursuant to the pilot plan and relevant notices, VAT is generally imposed in lieu of business tax in certain
service industries, including technology services and advertising services, on a nationwide basis. VAT of a rate of 6% applies to revenue
derived from the provision of certain services. Certain small taxpayers under PRC law are subject to reduced value-added tax at a rate
of 3%. Unlike business tax, a taxpayer is allowed to offset the qualified input VAT paid on taxable purchases against the output VAT chargeable
on the services provided.

According to the above-regulations, our PRC subsidiary
and consolidated affiliated entities are generally subject to a 6% VAT rate.

Dividend Withholding Tax

The Enterprise Income Tax Law provides that since
January 1, 2008, an income tax rate of 10% will normally be applicable to dividends declared to non-PRC resident investors which do not
have an establishment or place of business in the PRC, or which have such establishment or place of business but the relevant