Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 241

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 19
Chunk 241
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 on a case-by-case basis. The Company’s VIE entity Xinjiang YSX and its subsidiaries Anjielun and Chuangzhan are all incorporated in Kashi city of Xinjiang Uygur Autonomous Region, where tax reduction and exemption policies were adopted and promulgated by local government to grant qualified enterprises enterprise income tax exemption for the firstfive yearsand a reduced corporate income tax of10% to15% thereafter, as an incentive to attract enterprises to establish their business operations in such region and to stimulate local economic development. As a result, Xinjiang YSX is entitled to income tax exemption from 2015 to 2020 and then subject to15% income tax rate starting from January 2021. Anjielun is entitled to income tax exemption from 2018 to 2022 and then subject to10% income tax rate since January 2023, and Chuangzhan is entitled to income tax exemption from 2021 to 2025 and will be subject to15% income tax rate starting from January 2026. Xinjiang YSX’s subsidiary, YSX Network, is located in Guangzhou city of Guangdong province as general taxpayer and is subject to25% income tax rate. In addition, EIT grants preferential tax treatment to High and New Technology Enterprises (“ HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of15%, subject to a requirement that they re-apply for their HNTE status every three years. EIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The Company’s another VIE, Xihang, was approved as a HNTE on December 20, 2021 and was entitled to a reduced income tax rate of15% with a term ofthree years. Xihang’s HNTE certificate expired on December 20, 2024. Xihang filed an application with the local tax authority and is in the process of renewing the HNTE certificate as of the date of this report, which is expected to be approved by the local tax authority by the end of August 2025.
As a result of the above, the Company’s corporate income taxes for the years ended March 31, 2025, 2024 and 2023 were reported at a blended reduced rate. The impact of the tax holidays and exemptions