Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 72

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 is subject to income taxes on an entity
basis on income arising in or derived from the location in which each entity is domiciled.

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Shineco is incorporated in the United States and has
no operating activities. Shineco Life is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 8.25%
on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000. Biowin is subject to corporate
income tax at a reduced rate of 15% starting from December 2019, when it was approved by local government as a High and New Technology
Enterprises (“HNTEs”), to December 2022. In December 2022, the Company successfully renewed its HNTE certification with local
government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2025. The subsidiaries
of Wintus in the PRC are governed by the Income Tax Laws of the PRC and are currently subject to tax at a statutory rate of 25% on taxable
income, except certain subsidiaries that are recognized as small low-profit enterprises. According to the relevant PRC tax policies, once
an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the taxable income not more than
RMB3 million is subject to a reduced effective rate of 5% during the period from January 1, 2023 to December 31, 2027.

On December 22, 2017, The Act was enacted. The Act
imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are
subject to U.S. taxation. The change in rate has caused the Company to re-measure its income tax liability and record an estimated income
tax expense of US$744,766 for the year ended June 30, 2018. In accordance with SAB 118, additional work is necessary to do a more detailed
analysis of The Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current
tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year period using
specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year