Company: ZLAB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008409
Chunk: 43

Company: Zai Lab Ltd
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 43
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 in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Zai Lab (Hong Kong) Limited, ZL China Holding Two Limited, Zai Auto Immune (Hong Kong) Limited, and Zai Anti Infectives (Hong Kong) Limited are exempted from income tax on its foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of dividends. People’s Republic of ChinaUnder EIT Law, the statutory income tax rate is 25%, and the EIT rate will be reduced to 15% for state-encouraged High and New Technology Enterprises (“HNTE”). Zai Lab (Shanghai) Co., Ltd., first obtained an HNTE certificate in 2018 and began to enjoy the preferential tax rate of 15% from 2018 to 2020 and further extended the certificate effective 

F-24

Zai Lab LimitedNotes to the Consolidated Financial StatementsFor the Years Ended December 31, 2024, 2023, and 2022

for 2021 to 2026. Zai Lab International Trading (Shanghai) Co., Ltd., Zai Lab (Suzhou) Co., Ltd., Zai Biopharmaceutical (Suzhou) Co., Ltd., and Zai Lab Trading (Suzhou) Co., Ltd. are subject to the statutory rate of 25%. No provision for income taxes has been required to be accrued because the Company is in a cumulative loss position for the periods presented. The following table presents loss (income) before income taxes ($ in thousands): Year Ended December 31,202420232022Cayman Islands(2,453)(16,792)19,454 British Virgin Islands— — 2 Mainland China146,725 253,274 290,056 Hong Kong1,808 4,483 53,425 United States110,422 92,869 79,620 Australia19 14 (260)Taiwan582 772 989 257,103 334,620 443,286 Reconciliations of the differences between the Chinese statutory income tax rate and the Company’s effective income tax rate were as follows: Year Ended December 31,202420232022Statutory income tax rate25 %25 %25 %Tax-exempted income0.42 %0.19 %— %Share-based compensation(3.52 %)(