Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 477

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 477
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of Double Taxation and Prevention of Fiscal Evasion, which became effective on December 8, 2006, and the Announcement of the State Administration
of Taxation on Issues Relating to “Beneficial Owner” in Tax Treaties, which became effective on April 1, 2018, dividends
from our PRC operating subsidiaries paid to us through our Hong Kong subsidiary may be subject to a withholding tax at a rate of 10%,
or at a rate of 5% if our Hong Kong subsidiary is considered a “beneficial owner” that is generally engaged in substantial
business activities and entitled to treaty benefits under the Arrangement between the PRC and the Hong Kong Special Administrative Region
on the Avoidance of Double Taxation and Prevention of Fiscal Evasion.

Laws
and Regulations Related to Employment and Labor Protection

On
June 29, 2007, the National People’s Congress promulgated the Employment Contract Law of PRC (“Employment Contract Law”),
which became effective as of January 1, 2008, and amended on December 28, 2012. The Employment Contract Law requires employers to provide
written contracts to their employees, restricts the use of temporary workers and aims to give employees long-term job security.

Pursuant
to the Employment Contract Law, employment contracts lawfully concluded prior to the implementation of the Employment Contract Law and
continuing as of the date of its implementation shall continue to be performed. Where an employment relationship was established prior
to the implementation of the Employment Contract Law but no written employment contract was concluded, a contract must be concluded within
one month after its implementation.

On
September 18, 2008, the State Council promulgated the Implementing Regulations for the PRC Employment Contract Law which came into effect
immediately. These regulations interpret and supplement the provisions of the Employment Contract Law.

Our
standard employment contract complies with the requirements of the Employment Contract Law and its implementing regulations. We have
entered into written employment contracts with all of our employees.

Pursuant
to the PRC Labor Law and the PRC Labor Contract Law, employers must execute written labor contracts with full-time employees. All employers
must comply with local minimum wage standards. Violations of the PRC Labor Contract Law and the PRC Labor Law may result in the imposition
of fines and other administrative and criminal liability in the case of serious violations.

47

In
addition, according to the PRC Social Insurance Law and Administration Measures