Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 112

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 112
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 of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland
Revenue Ordinance (IRO)) for corporations, and the remaining profits will continue to be taxed at the existing tax rate, 16.5%. No provision
for Hong Kong profits tax had been made to China Auto Market Group Ltd., a subsidiary of us, during the years ended December 31, 2022,
2023 and 2024 as it did not have assessable profit during the periods presented.

PRC

Generally, our subsidiaries,
which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide taxable income
as determined under PRC tax laws and accounting standards at a rate of 25%.

According to Taxation [2019]
No. 13 which was effective from January 1, 2019 to December 31, 2021 and Taxation [2021] No. 12 which was effective from January 1, 2021
to December 31, 2022, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3
million. A small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of 2.5% on its taxable income
below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million in 2021 and 2022.
According to Taxation [2022] No. 13 which was effective from January 1, 2022 to December 31, 2024, a small-scale and low-profit enterprise
receives a tax preference including a preferential tax rate of 5% on its taxable income between RMB1 million and RMB3 million. According
to Taxation [2023] No. 06 which was effective from January 1, 2023 to December 31, 2024, a small-scale and low-profit enterprise receives
a tax preference including a preferential tax rate of 5% on its taxable income below RMB1 million.

High and new technology enterprises
enjoy a preferential tax rate of 15% under PRC tax law. Shanghai Chengle Network Technology Co., Limited, one of our subsidiaries, currently
qualifies as a “new high-tech enterprise”, and has been entitled to the preferential rate of 15%