Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 65

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 65
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 reference to the level of its authorized share capital. The Government Fee is payable at the end of January in every
year and is based on the level of the authorized share capital at the time when the fee is due.

Payments of dividends and
capital in respect of our Class A Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required
on the payment of a dividend or capital to any holder of our Class A Ordinary Shares, nor will gains derived from the disposal of our
Class A Ordinary Shares be subject to Cayman Islands income or corporation tax.

No stamp duty is payable in
the Cayman Islands in respect of the issue of the shares or on an instrument of transfer in respect of a share of a Cayman company except
those which hold interests in land in the Cayman Islands and except where the relevant document or instrument is executed in or brought
to the Cayman Islands, or produced before a Cayman Islands court.

People’s Republic of China Taxation

Under the PRC Enterprise Income
Tax Law and its implementation rules, an enterprise established outside of the PRC with a “de facto management body” within
the PRC is considered a resident enterprise and will be subject to the enterprise income tax at the rate of 25% on its global income.
The implementation rules define the term “de facto management body” as the body that exercises full and substantial control
over and overall management of the business, productions, personnel, accounts and properties of an enterprise. In April 2009, the State
Administration of Taxation issued a circular, known as Circular 82, which provides certain specific criteria for determining whether the
“de facto management body” of a PRC-controlled enterprise that is incorporated offshore is located in China. Although this
circular only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals
or foreigners, the criteria set forth in the circular may reflect the State Administration of Taxation’s general position on how
the “de facto management body” test should be applied in determining the tax resident status of all offshore enterprises.
According to Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded
as a PRC tax resident by virtue of having its “de facto management body” in China only if all of the following conditions
are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii