Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 199

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 199
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 on Issues Relating to Withholding at Source of Income Tax of Non-resident Enterprises, or the “SAT Public Notice 37,”
in October 2017, which came into effect on December 1, 2017. According to SAT Public Notice 37, where the non-resident enterprise
fails to declare its tax payable pursuant to Article 39 of the EIT Law, the tax authority may order it to pay its tax due within
required time limits, and the non-resident enterprise shall declare and pay its tax payable within such time limits specified by the tax
authority.

According to the Arrangement
Between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention of Fiscal
Evasion with Respect to Taxes on Income, or the “Double Tax Avoidance Arrangement,” which was promulgated and came into effect
in August 2006, 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, which was promulgated
by the SAT in February 2009, if the relevant PRC tax authorities determine, in their discretion, 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. Based on the Announcement on Certain Issues with Respect to the “Beneficial Owner” in Tax Treaties, which was
promulgated by the SAT in February 2018 and came into effect in April 2018, if an applicant’s business activities do not
constitute substantive business activities, it could result in the negative determination of the applicant’s status as a “beneficial
owner”, and consequently, the applicant could be precluded from enjoying the above-mentioned reduced income tax rate of 5% under
the Double Tax Avoidance Arrangement.

Value-added Tax

According to the Provisional
Regulations on Value-added Tax, which was promulgated by the State Council on December 13, 1993 and was amended in 2008, 2016 and 2017