Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 250

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 250
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) are maintained, outside
China. As such, we do not believe that our Company meets all of the conditions above or is a PRC resident enterprise for PRC tax purposes,
even if the conditions for “de facto management body” prescribed in the Circular 82 are applicable. For the same reasons,
we believe our other entities outside China are not PRC resident enterprises either. However, the tax resident status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de
facto management body.” There can be no assurance that the PRC government will ultimately take a view that is consistent with our
position and there is a risk that the PRC tax authorities may deem our Company as a PRC resident enterprise since a substantial majority
of the members of our management team are located in China, in which case we would be subject to the EIT at the rate of 25% on worldwide
income. If the PRC tax authorities determine that our Cayman Islands holding company is a “resident enterprise” for EIT purposes,
a number of unfavorable PRC tax consequences could follow.

If the PRC tax authorities
determine that Zerolimit Cayman is a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10%
withholding tax from dividends we pay to our non-PRC enterprise shareholders and with respect to gains derived by our non-PRC enterprise
shareholders from transferring our Ordinary Shares. In addition, non-resident enterprise shareholders (including the holders of Ordinary
Shares) may be subject to a 10% PRC tax on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated
as sourced from within the PRC. Our non-PRC individual shareholders (including the holders of Ordinary Shares) may be subject to 20%
PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise
(which in the case of dividends may be withheld at source) unless a reduced rate is available under an applicable tax treaty. It is unclear
whether, if we are considered a PRC resident enterprise, holders of our Ordinary Shares would be able to claim the benefit of income
tax treaties or agreements entered into between China and other countries or areas.

According to the Announcement
of SAT on Several Issues Concerning the Enterprise Income Tax on Indirect Property Transfer by Non-Resident