Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 304

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 304
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 the periods based on existing legislation, interpretations and practices in respect thereof. The PRC
Enterprise Income Tax Law (“EIT Law”), which became effective on January 1, 2008, applies a uniform enterprise income tax
(“EIT”) rate of 25% to both foreign-invested enterprises (“FIEs”) and domestic enterprises, while preferential
tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. For the years ended September 30, 2023 and 2022,
the company is within the tax exemption period. The Company enjoys a preferential tax rate at 12.5% for the next 3 consecutive years
starting from January 1, 2023.

The Company follows the liability method of accounting
for income taxes in accordance with ASC 740 (“ASC 740”), Income Taxes. The Company accounts for current income taxes in accordance
with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax
bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount
expected to be realized.

The Company is not subject to tax on income or
capital gain under the current tax laws of U.S. And the Company is subject to tax on income or capital gain under the tax laws of PRC.

Statutory surplus reserves

The Company’s PRC subsidiaries are required
to allocate at least 10% of their after-tax profit to the general reserve in accordance with the PRC accounting standards and regulations.
The allocation to the general reserve will cease if such reserve has reached to 50% of the registered capital of respective company.
These reserves can only be used for specific purposes and are not transferable to the Company in form of loans, advances, or cash dividends.
There is no such regulation of providing statutory reserve in Hong Kong. The statutory surplus reserves that recognized for the years
ended September 30, 2024 and 2023 were $271,127 and $252,285 respectively.

| F-17 |

Segment reporting

Operating segments are reported in a manner consistent
with the internal