Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 78

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 78
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 able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that the Company is
treated as a PRC resident enterprise.

Provided that CHNR, as a BVI
holding company, is not deemed to be a PRC resident enterprise, our shareholders who are not PRC residents will not be subject to PRC
income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares. However, under SAT Circular
7, where a non-resident enterprise conducts an “indirect transfer” by transferring taxable assets, including, in particular,
equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident
enterprise, being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant
tax authority such indirect transfer. Using a “substance over form” principle, the PRC tax authority may disregard the existence
of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding
or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee
would be obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident
enterprise. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under SAT Circular
7, and we may be required to expend valuable resources to comply with SAT Bulletin 37, or to establish that we should not be taxed under
SAT Circular 7 and SAT Bulletin 37.

In addition to the uncertainty
in how the new resident enterprise classification could apply, it is also possible that the rules may change in the future, possibly with
retroactive effect. If we are required under the Enterprise Income Tax Law to withhold PRC income tax on our dividends payable to our
foreign shareholders, including U.S. investors, or if you are required to pay PRC income tax on the transfer of our shares under the circumstances
mentioned above, the value of your investment in our shares may be materially and adversely affected. These rates may be reduced by an
applicable tax treaty, but it is unclear whether, if we are considered a PRC resident enterprise, holders of our shares would be able
to claim the benefit