Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 49

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 49
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We may be classified as a “resident enterprise” for PRC enterprise income tax purposes; such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.

The Enterprise Income Tax Law provides
that enterprises established outside of China whose “de facto management bodies” are located in China are considered PRC
tax resident enterprises and will generally be subject to the uniform 25% PRC enterprise income tax rate on their global income. In 2009,
the State Administration of Taxation (“SAT”) issued the Circular of the State Administration of Taxation on Issues Concerning
the Identification of Chinese-Controlled Overseas Registered Enterprises as Resident Enterprises in Accordance with the Standards of
Actual Organizational Management (“SAT Circular 82”), which was partially amended by the Announcement on Issues concerning
the Determination of Resident Enterprises Based on the Standards of Actual Management Institutions issued by the SAT on January 29, 2014,
and further partially amended by the Decision on Issuing the Lists of Invalid and Abolished Tax Departmental Rules and Taxation Normative
Documents issued by the SAT on December 29, 2017. SAT Circular 82, as amended, provides certain specific criteria for determining whether
the “de facto management body” of a Chinese-controlled offshore-incorporated enterprise is located in China, which include
all of the following conditions: (i) the location where senior management members responsible for an enterprise’s daily operations
discharge their duties; (ii) the location where financial and human resource decisions are made or approved by organizations or persons;
(iii) the location where the major assets and corporate documents are kept; and (iv) the location where more than half (inclusive) of
all directors with voting rights or senior management have their habitual residence. SAT Circular 82 further clarifies that the identification
of the “de facto management body” must follow the “substance over form” principle. In addition, the SAT issued
the Announcement of State Administration of Taxation on Promulgation of the Administrative Measures on Income Tax on Overseas Registered
Chinese-funded Holding Resident Enterprises (Trial Implementation) (“SAT Bulletin 45”) on July 27, 2011, effective from September
1, 2011, and partially amended on April 17, 2015, June 28, 2016, and June 15, 2018, providing more guidance on the implementation of
SAT Circular 82. SAT Bulletin 45 clarifies matters including resident status