Company: NOAH
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0001410578-25-000852
Chunk: 322

Company: NOAH HOLDINGS LTD
Filing Date: 2025-04-24
Form: 20-F
Item: Item 16K
Chunk 322
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 ───────────────────────────────────────────────────────────────────────────────────────────────────────
                                        (Amount in Thousands)                                          
  Balance at beginning of the year      271,813                                333,467        319,780  
  Provided                              94,856                                  41,912         58,979  
  Addition due to acquisition           —                                        5,615              —  
  Write off                             ( 23,730)                            ( 52,995)      ( 11,425)  
  Reversal                              ( 9,472)                              ( 8,219)       ( 2,584)  
  Balance at ending of the year         333,467                                319,780        364,750  

In accordance with the EIT Law, dividends, which arise from profits of FIEs earned after January 1, 2008, are subject to a10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to5%, if the investor holds at least25% in the FIE, or10%, if the investor holds less than25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC companies unless the Group has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The accumulated undistributed earnings of the Group’s PRC subsidiaries were RMB5.1billion and RMB5.1billion as of December 31, 2023 and 2024, respectively. The undistributed earnings of the Group’s PRC subsidiaries would be indefinitely reinvested.

Aggregate undistributed earnings of the Group’s VIE companies located in the PRC that are available for distribution to the Group were approximately RMB3.4billion and RMB3.3billion as of December 31, 2023 and 2024, respectively. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amount in domestic subsidiaries. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group has not recorded any such deferred tax liability attributable to the undistributed earnings of