Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 91

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 91
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 subject to tax in China. Resident enterprises are defined as enterprises that are established in China in accordance with PRC laws,
or that are established in accordance with the laws of foreign countries but are actually or in effect controlled from within China. Non-resident enterprises
are defined as enterprises that are organized under the laws of foreign countries and whose actual management is conducted outside China,
but have established institutions or premises in China, or have no such established institutions or premises but have income generated
from inside China. Under the EIT Law and relevant implementing regulations, a uniform corporate income tax rate of 25% is applied. However,
if non-resident enterprises have not formed permanent establishments or premises in China, or if they have formed permanent
establishments or premises in China but there is no actual relationship between the relevant income derived in China and the established
institutions or premises set up by them, withholding income tax is set at the rate of 10% with respect to their income sourced from inside
the PRC.

Value-Added Tax

The PRC Provisional Regulations on Value-Added
Tax were promulgated by the State Council on December 13, 1993, became effective on January 1, 1994, and were subsequently amended
from time to time. The Detailed Rules for the Implementation of the PRC Provisional Regulations on Value-Added Tax (2011 Revision)
were promulgated by the Ministry of Finance on December 25, 1993, and subsequently amended in 2008 and 2011. On November 19,
2017, the State Council promulgated the Decisions on Abolishing the PRC Provisional Regulations on Business Tax and Amending the PRC Provisional
Regulations on Value-Added Tax. Pursuant to these regulations, rules and decisions, all enterprises and individuals engaged in the
sale of goods, provision of processing, repair, and replacement services, sales of services, intangible assets, real property, and the
importation of goods within the PRC are value-added tax, or VAT, taxpayers. On March 20, 2019, the Ministry of Finance, the SAT,
and the General Administration of Customs jointly issued the Announcement on Relevant Policies on Deepening the Reform of Value-Added
Tax. Pursuant to this announcement, the generally applicable VAT rates are simplified as 13%, 9%, 6%, and 0%, which became effective on
April 1, 2019, and the VAT rate applicable to small