Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 199

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 199
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 of stamp duty in the BVI provided that
they do not relate to real estate in the BVI.

There
are currently no withholding taxes or exchange control regulations in the BVI applicable to the company or its shareholders.

BVI
Economic Substance

The
British Virgin Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing
concerns raised by the Council of the European Union as to offshore structures engaged in certain activities which attract profits without
real economic activity. With effect from January 1, 2019, the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the
“ ESA”) came into force in the British Virgin Islands introducing certain economic substance requirements for British Virgin
Islands tax resident companies which are engaged in certain “relevant activities.” However, it is not anticipated that the
Company itself will be subject to any such requirements. Although it is presently anticipated that the ESA will have little material
impact on the Company or its operations, as the legislation is new and remains subject to further clarification and interpretation it
is not currently possible to ascertain the precise impact of these legislative changes on the Company.

People’s
Republic of China Enterprise Taxation

The
following brief description of Chinese enterprise laws is designed to highlight the enterprise-level taxation on our earnings, which
will affect the amount of dividends, if any, we are ultimately able to pay to our shareholders. See “ Dividend Policy.”

Enterprise
Income Tax

According
to the Enterprise Income Tax Law of the People’s Republic of China, or the EIT Law, which was promulgated by the Standing Committee
of the National People’s Congress of the PRC on March 16, 2007, and became effective on January 1, 2008, and then amended on February
24, 2017, and the Implementation Rules of the EIT Law, or the Implementation Rules, which were promulgated by the State Council on December
6, 2007, effective on January 1, 2008, and amended on April 23, 2019, enterprises are divided into resident enterprises and non-resident
enterprises. Resident enterprises pay enterprise income tax on their incomes obtained in and outside the PRC at the rate of 25%. Non-resident
enterprises setting up institutions in the PRC pay enterprise income tax on the incomes obtained by such institutions in and outside
the PRC at the rate of 25%. Non-resident enterprises with no