Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 47

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 47
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 facto management bodies” located
within China may be considered to be PRC resident enterprises and will be subject to PRC enterprise income tax at the rate of 25% on their
worldwide income. The implementation rules of the EIT Law define “de facto management bodies” as establishments that exercise
full and substantial control over and overall management of the business, productions, personnel, accounts and properties of an enterprise.
The only detailed guidance currently available for the definition of “de facto management body” as well as the determination
and administration of tax residency status of offshore-incorporated enterprises are set forth in the Notice Regarding the Determination
of Chinese-Controlled Overseas Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of De Facto Management Bodies issued
by the SAT in April 2009, or Circular 82, and the Administrative Measures for Enterprise Income Tax of Chinese-Controlled Overseas Incorporated
Resident Enterprises (Trial Version) issued by the SAT in July 2011, or Bulletin No. 45, which provides guidance on the administration
as well as the determination of the tax residency status of a Chinese-controlled offshore-incorporated enterprise, defined as an enterprise
that is incorporated under the law of a foreign country or territory and that has a PRC company or PRC corporate group as its primary
controlling shareholder.

According to Circular 82, a Chinese-controlled
offshore-incorporated enterprise will be regarded as a PRC resident enterprise by virtue of having its “de facto management body”
in China and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met:

  the primary location of the day-to-day operational management and the places where they perform their duties are in the PRC;                                  
  decisions relating to the enterprise’s financial and human resource matters are made or are subject to approval of organizations or personnel in the PRC;     
  the enterprise’s primary assets, accounting books and records, company seals and board and shareholder resolutions are located or maintained in the PRC; and  
  50% or more of voting board members or senior executives habitually reside in the PRC.                                                                        

Bulletin No. 45 further clarifies certain issues
related to the determination of tax resident status and competent tax authorities. It also specifies that when provided with a copy of
Recognition of Residential Status from a resident Chinese-controlled offshore-incorporated enterprise, a payer does not need to withhold
income tax when paying certain PRC-sourced