Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 493

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 493
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.S. again because the U.S.-China tax treaty will avoid double taxation between these two nations.

PRC
regulation of loans and direct investment by offshore holding companies in PRC entities may delay or prevent us from using the proceeds
of our securities offerings to make loans or additional capital contributions to our PRC operating subsidiaries, which could materially
and adversely affect our liquidity and our ability to fund and expand our business.

In
the normal course of our business, we may make loans to our PRC subsidiaries or may make additional capital contributions to our PRC
subsidiaries. Any loans to our wholly foreign-owned or holding subsidiaries in China, which are treated as foreign-invested enterprises
(“FIEs”) under PRC law, are subject to PRC regulations and foreign exchange loan registrations. For example, loans by us
to our FIE subsidiaries in China to finance their activities cannot exceed statutory limits and must be registered with SAFE. In addition,
a foreign invested enterprise shall use its capital pursuant to the principle of authenticity and self-use within its business scope.
The capital of a foreign invested enterprise shall not be used for the following purposes: (i) directly or indirectly used for payment
beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly
used for investment in securities or investments other than banks’ principal-secured products unless otherwise provided by relevant
laws and regulations; (iii) granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license;
and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate
enterprises).

16

SAFE
promulgated the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement
of Capital of Foreign-invested Enterprises, or SAFE Circular 19, effective June 2015, in replacement of the Circular on the Relevant
Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign-Invested
Enterprises, the Notice from the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration
of Foreign Exchange Businesses, and the Circular on Further Clarification and Regulation of the Issues Concerning the Administration
of Certain Capital Account Foreign Exchange Businesses. According to SAFE Circular 19, the flow and use of the RMB capital converted
from foreign currency-denominated registered capital of a foreign