Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 41

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 41
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 the PRC at the rate of 25%. Non-resident enterprises with no institutions in the PRC, and
non-resident enterprises whose incomes having no substantial connection with their institutions in the PRC, shall pay enterprise income
tax on their incomes obtained in the PRC at a reduced rate of 10%.

The Arrangement between China Mainland and
Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes
on Income(the “ Arrangement”) was promulgated by the State Administration of Taxation (“ SAT”) on August 21,
2006 and came into effect on December 8, 2006. According to the Arrangement, a company incorporated in Hong Kong will be subject to withholding
tax at the lower rate of 5% on dividends it receives from a company incorporated in the PRC if it holds a 25% interest or more in the
PRC company. The Notice on the Understanding and Identification of the Beneficial Owners in the Tax Treaty(the “ Notice”)
was promulgated by SAT and became effective on October 27, 2009. According to the Notice, a beneficial ownership analysis will be used
based on a substance-over-form principle to determine whether or not to grant tax treaty benefits.

The WFOE, Jiangsu Yanggu and its subsidiaries
are resident enterprises and pay EIT tax at the rate of 25% in PRC. It is more likely than not that the Company and its offshore subsidiary
would be treated as a non-resident enterprise for PRC tax purposes. Please see Section of “Taxation - People’s Republic
of China Enterprise Taxation”.

Value-added Tax and Business Tax

TheProvisional Regulations on Value-Added
Tax of the PRC(the “ VAT Regulations”) were promulgated by the State Council on December 13, 1993 and took effect on January
1, 1994, which were last amended on November 19, 2017. The Rules for the Implementation of the Provisional Regulations on Value Added
Tax of the PRC(the “ Rules”) were promulgated by the Ministry of Finance (“ MOF”) on December 25, 1993 and
were last amended on October 28, 2011. Pursuant to the VAT Regulations and the Rules, entities or individuals in the PRC engaged in the
sale of goods, the provision of processing, repairs and replacement services and the importation of goods are required