Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 81

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4
Chunk 81
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Issues concerning “ Beneficial Owners” in Tax Treaties issued on February 3, 2018 by the State Administration of Taxation,
when determining the status of “beneficial owners,” a comprehensive analysis may be conducted through materials such as articles
of association, financial statements, records of capital flows, minutes of board of directors, resolutions of board of directors, allocation
of manpower and material resources, the relevant expenses, functions and risk assumption, loan contracts, royalty contracts or transfer
contracts, patent registration certificates and copyright certificates, etc. However, even if an applicant has the status of a “beneficiary
owner,” if the competent tax authority finds it necessary to apply the principal purpose test clause in the tax treaties or the
general anti-tax avoidance rules stipulated in domestic tax laws, the general anti-tax avoidance provisions shall apply.

Enterprise Income Tax

In December 2007, the State Council promulgated
the Implementing Rules of the Enterprise Income Tax Law, which became effective on January 1, 2008. The Enterprise Income Tax Law and
its relevant implementing rules (i) impose a uniform 25% enterprise income tax rate, which is applicable to both foreign-invested enterprises
and domestic enterprises, (ii) permit companies to continue to enjoy their existing tax incentives, subject to certain transitional phase-out
rules, and (iii) introduce new tax incentives, subject to various qualification criteria.

The Enterprise Income Tax Law also provides that
enterprises organized under the laws of jurisdictions outside China with their “de facto management bodies” located within
China may be considered PRC resident enterprises and therefore be subject to PRC enterprise income tax at the rate of 25% on their worldwide
income. The implementing rules further define the term “de facto management body” as the management body that exercises substantial
and overall management and control over the production and operations, personnel, accounts, and properties of an enterprise. If an enterprise
organized under the laws of a jurisdiction outside China is considered a PRC resident enterprise for PRC enterprise income tax purposes,
a number of unfavorable PRC tax consequences could follow. First, it would be subject to the PRC enterprise income tax at the rate of
25% on its worldwide income. Second, a 10% withholding tax would be imposed on dividends it pays to its non-PRC enterprise shareholders
and with respect to gains derived by its non-PRC enterprise shareholders from the transfer of its shares.

On October 17, 2017, the State Administration