Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 49

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 49
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 which meets all of the following circumstances shall be directly deemed as having no
reasonable commercial purposes: (i) over 75% of the value of the equity interests of the offshore holding company are directly or indirectly
derived from PRC taxable properties; (ii) at any time during the year before the indirect transfer, over 90% of the total properties of
the offshore holding company are investments within PRC territory, or in the year before the indirect transfer, over 90% of the offshore
holding company’s revenue is directly or indirectly derived from PRC territory; (iii) the function performed and risks assumed by
the offshore holding company are insufficient to substantiate its corporate existence; and (iv) the foreign income tax imposed on the
indirect transfer is lower than the PRC tax imposed on the direct transfer of the PRC taxable properties. In October, 2017, the SAT issued
the Bulletin of SAT on Issues Concerning the Withholding of Non-resident Enterprise Income Tax at Source, or Bulletin 37, which, among
others, repeals certain rules stipulated in Circular 7. Bulletin 37 further details and clarifies the tax withholding methods in respect
of income of non-resident enterprises.

Regulations on PRC Value-Added Tax and Business
Tax

Pursuant to applicable PRC tax regulations, any
entity or individual conducting business in the service industry is generally required to pay a business tax at the rate of 5% on the
revenues generated from providing such services. However, if the services provided are related to technology development and transfer,
such business tax may be exempted subject to approval by the relevant tax authorities. Pursuant to the Provisional Regulations on Value-Added
Tax of the PRC and its implementation regulations, unless otherwise specified by relevant laws and regulations, any entity or individual
engaged in the sales of goods, provision of processing, repairs and replacement services and importation of goods into China is generally
required to pay a value-added tax, or VAT, for revenues generated from sales of products, while qualified input VAT paid on taxable purchase
can be offset against such output VAT.

In November 2011, the Ministry of Finance and
the State Administration of Taxation promulgated the Pilot Plan for Imposition of Value-Added Tax to Replace Business Tax. In March 2016,
the Ministry of Finance and the State Administration of Taxation further promulgated the Notice on Fully Promoting the Pilot Plan for
Replacing Business Tax