Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 115

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 115
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 China-based operating company, then there are significant uncertainties under the PRC Enterprise Income Tax Law relating
to the withholding tax liabilities of the PRC entity, and dividends payable by the PRC entity to our offshore entity may not qualify
for certain treaty benefits.

Under
the PRC Enterprise Income Tax Law (“PRC EIT Law”) and its implementation rules, if following our initial business combination
we are a non-resident enterprise, that is, an enterprise lawfully incorporated pursuant to the laws of a foreign country (region) that
has an office or premises established in China with no actual management functions performed in China, or an enterprise that has income
derived from or accruing in China although it does not have an office or premises in China, will be subject to a withholding tax rate
of 10%. Under the Notice of the State Administration of Taxation on Issues regarding the Administration of the Dividend Provision in
Tax Treaties promulgated on February 20, 2009, the taxpayer needs to satisfy certain conditions to utilize the benefits under a tax treaty.
These conditions include: (1) the taxpayer must be the beneficial owner of the relevant dividends, and (2) the corporate shareholder
to receive dividends from the PRC entity must have continuously met the direct ownership thresholds during the 12 consecutive months
preceding the receipt of the dividends. Further, under Announcement of the State Administration of Taxation on Issues Relating to “Beneficial
Owner” in Tax Treaties, which took effect on April 1, 2018, a “Beneficial Owner” shall mean a person who has ownership
and control over the income and the rights and property from which the income is derived. To determine the “beneficial owner”
status of a resident of the treaty counterparty who needs to take advantage of the tax treaty benefits, a comprehensive analysis shall
be carried out, taking into account actual conditions of the specific case.

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Entitlement
to a lower tax rate on dividends according to tax treaties or arrangements between the PRC central government and governments of other
countries or regions is subject to Announcement of State Taxation Administration on Promulgation of the Administrative Measures on Non-resident
Taxpayers Enjoying Treaty Benefits, or Circular 35. Circular 35 provides that non-resident enterprises are not required to obtain pre-approval
from the relevant tax authority in order to enjoy the reduced withholding tax. Instead, non-resident enterprises and their withholding
agents may, by self-assessment