Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 89

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 89
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 withholding agents may, by self-assessment and on confirmation that the prescribed
criteria to enjoy the tax treaty benefits are met, directly apply the reduced withholding tax rate, and file necessary forms and supporting
documents when performing tax filings, which will be subject to post-tax filing examinations by the relevant tax authorities. In February 2018,
the SAT promulgated the Notice on Issues Related to the “Beneficial Owner” in Tax Treaties, according to which when determining
the applicant’s status of the “beneficial owner” regarding tax treatments in connection with dividends in the tax treaties,
several factors, including without limitation, whether the applicant is obligated to pay more than 50% of its 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. In October 2019, the SAT promulgated the Administrative Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax
Treaties, or SAT Circular 35. SAT Circular 35 became effective on January 1, 2020 and superseded SAT Circular 60 on the same date.
Compared to SAT Circular 60, SAT Circular 35 provides that the nonresident enterprises and their withholding agents are not required to
submit the supporting documents for tax treaty benefits when performing tax filings. Instead, nonresident enterprises and their withholding
agents may retain such supporting documents themselves for the post-tax filing examinations by the relevant tax authorities. According
to the Circular on Several Issues regarding the “Beneficial Owner” in Tax Treaties, or Circular 9, which was issued in February 2018
by the STA, effective as of April 1, 2018, when determining the applicant’s status as 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 its income in twelve months to residents in a third country or region, whether
the business operated by the applicant constitutes 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