Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 76

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 76
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 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 income is not effectively connected
with the establishment or place of business, to the extent such dividends are derived from sources within the PRC.

Pursuant to the Arrangement Between the Mainland of
China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect
to Taxes on Incomes, or the Double Tax Avoidance Arrangement, and other applicable PRC laws, if a Hong Kong resident enterprise is determined
by the competent PRC tax authority to have satisfied the relevant conditions and requirements under such Double Tax Avoidance Arrangement
and other applicable laws, the 10% withholding tax on the dividends the Hong Kong resident enterprise receives from a PRC resident enterprise
may be reduced to 5%. However, based on the Circular on Certain Issues with Respect to the Enforcement of Dividend Provisions in Tax Treaties,
or the SAT Circular 81, issued on February 20, 2009 by the SAT, if the relevant PRC tax authorities determine, in their discretions, that
a company benefits from such reduced income tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities
may adjust the preferential tax treatment. According to the Circular on Several Questions regarding the “ Beneficial Owner”
in Tax Treaties, which was issued on February 3, 2018 by the SAT and took effect on April 1, 2018, when determining the applicant’s
status of the “beneficial owner” regarding tax treatments in connection with dividends, interests or royalties in the tax
treaties, several factors, including without limitation, whether the applicant is obligated to pay more than 50% of his or her income
in twelve months to residents in third country or region, whether the business operated by the applicant constitutes the actual business
activities, and whether the counterparty country or region to the tax treaties does not levy any tax or grant tax exemption on relevant
incomes or levy tax at an extremely low rate, will be taken into account, and it will be analyzed according to the actual circumstances
of the specific cases. This circular further provides that applicants who intend to prove his or her status of the “beneficial owner”
shall submit the relevant documents to the relevant tax bureau according to the Announcement on Iss