Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 50

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 10
Chunk 50
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are met: (a) senior management personnel and core management departments in charge of the daily operations of the enterprises have their
presence mainly in the PRC; (b) their financial and human resources decisions are subject to determination or approval by persons or
bodies in the PRC; (c) major assets, accounting books and company seals of the enterprises, and minutes and files of their board’s
and shareholders’ meetings are located or kept in the PRC; and (d) half or more of the enterprises’ directors or senior management
personnel with voting rights habitually reside in the PRC. Further to SAT Circular 82, the SAT issued Announcement of the State Administration
of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated
Overseas (Trial Implementation) (the “ SAT Bulletin 45”) on July 27, 2011, which took effect on September 1, 2011, to provide
more guidance on the implementation of SAT Circular 82. SAT Bulletin 45 provides for procedures and administration details of determination
on PRC resident enterprise status and administration on post-determination matters. If the PRC tax authorities determine that Xinxu Copper
Industry Technology Limited is a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences
could follow. For example, Xinxu Copper Industry Technology Limited may be subject to enterprise income tax at a rate of 25% with respect
to its worldwide taxable income. Also, a 10% withholding tax would be imposed on dividends we pay to our non-PRC enterprise shareholders
and with respect to gains derived by our non-PRC enterprise shareholders from transferring our shares or ordinary shares and potentially
a 20% of withholding tax would be imposed on dividends we pay to our non-PRC individual shareholders and with respect to gains derived
by our non-PRC individual shareholders from transferring our shares or ordinary shares.

It
is unclear whether, if we are considered a PRC resident enterprise, holders of our shares or ordinary shares would be able to claim the
benefit of income tax treaties or agreements entered into between China and other countries or areas. See “ Item 3. Key
Information - D. Risk Factors - Risk Factors Related to Doing Business in China - If we are classified as a PRC resident
enterprise for PRC enterprise income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PR