Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 131

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 131
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 the Cayman Islands) currently does not levy taxes on individuals or corporations based upon profits, income, gains or appreciation,
and there is no taxation in the Cayman Islands in the nature of inheritance tax or estate duty. There are no other taxes likely to be
material to CAAS Cayman levied by the government of the Cayman Islands except for stamp duty which may be applicable on instruments executed
in, or brought within the jurisdiction of the Cayman Islands. No stamp duties or other similar taxes or charges are payable under the
laws of the Cayman Islands in respect of the execution or delivery of any of the documents relating the proposed Redomicile Merger or
the performance or enforcement of any of them, unless they are executed in or thereafter brought within the jurisdiction of the Cayman
Islands for enforcement purposes or otherwise. We do not intend that any documents relating the proposed Redomicile Merger be executed
in or brought within the jurisdiction of the Cayman Islands. There are no exchange control regulations or currency restrictions in the
Cayman Islands.

People’s Republic of China Taxation

Under the Enterprise Income Tax Law of the People’s
Republic of China (the “EIT Law”) and its implementation rules, both effective on January 1, 2008, with the EIT Law further
being amended on December 29, 2018 and its implementation rules being amended on April 23, 2019, all domestic and foreign
investment companies will be subject to a uniform enterprise income tax at the rate of 25% and dividends from PRC enterprises to their
foreign shareholders will be subject to a withholding tax at a rate of 10% if the foreign investors are considered as non-resident enterprises
without any establishment or place within the PRC or if the dividends payable have no connection with the establishment or place of the
foreign investors within the PRC, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC
that provides for a lower withholding tax rate. In accordance with Caishui (2008) No. 1 issued by MOF and SAT on February 22,
2008, the accumulative undistributed profits of foreign investment companies generated before January 1, 2008, and distributed to
foreign investors after year 2008, shall be exempt from withholding tax.

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The EIT Law has introduced the concept of “resident
enterprises” and corresponding tax liability on resident enterprises’ worldwide