Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 316

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 316
---
ulated.

Under the EIT Law and its implementation rules,
an enterprise established outside China with a “place of effective management” within China is considered a China resident
enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting
obligations and a uniform25% enterprise income tax rate on its worldwide income. The implementation rules to the New EIT Law provide
that non-resident legal entities are considered PRC residents if substantial and overall management and control over the manufacturing
and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from
the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside the PRC should be treated
as residents for 2008 EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered
outside the PRC are deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC
income tax at a rate of25%.

Dividends paid to non-PRC-resident corporate investor
from profits earned by the PRC subsidiaries after January 1, 2008 would be subject to a withholding tax. The EIT law and its relevant
regulations impose a withholding tax at10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident
enterprise to its non-PRC-resident corporate investor for earnings generated beginning on January 1, 2008.

F-101

24. INCOME TAX(cont.)

As of December 31, 2021,2022 and 2023, there were
no retained earnings from consolidated level of all the PRC subsidiaries. And thus, the Company has not provided for deferred tax liabilities
on undistributed earnings.

The Company’s loss before income taxes by jurisdiction consisted
of:

                        For the Years Ended                                                                               
                        December 31,                                                                                      
                        2021                                        2022                         2023                     
                        RMB                                         RMB                          RMB                      
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Chinese mainland                                 ( 7,911,282                  ( 5,321,124                 ( 26,949,379  
  Hong Kong                                       ( 69,607,124                  ( 9,743,991                 ( 22,030,473  
  Cayman Islands                                 ( 380