Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 250

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 250
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 became effective on January 1,
2008 (as amended in December 2018). The EIT Law 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 subject
to EIT at the rate of 25% on their worldwide income. The Implementing Rules of the EIT Law further defines the term “de facto
management body” as the management body that exercises substantial and overall management and control over the business, personnel,
accounts and properties of an enterprise.

In April 2009, the
SAT issued the Notice Regarding the Determination of Chinese-Controlled Overseas Incorporated Enterprises as PRC Tax Resident Enterprises
on the Basis of De Facto Management Bodies, known as Circular 82, which provides certain specific criteria for determining whether the
“de facto management body” of a PRC-controlled enterprise that is incorporated offshore is deemed to be located in China.
Although Circular 82 only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not offshore enterprises
controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the SAT’s general position on how
the “de facto management body” test should be applied in determining the tax resident status of all offshore enterprises.

| 156 |

According to Circular 82,
an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by
virtue of having a “de facto management body” in China and will be subject to PRC enterprise income tax on its worldwide
income only if all of the following criteria are met: (i) the places where senior management and senior management departments that
are responsible for daily production, operation and management of the enterprise perform their duties are mainly located within the territory
of China; (ii) financial decisions (such as money borrowing, lending, financing and financial risk management) and personnel decisions
(such as appointment, dismissal and salary and wages) are decided or need to be decided by organizations or persons located within the
territory of China; (iii) main property, accounting books, corporate seal, the board of directors and files of the minutes of shareholders’
meetings of the enterprise are located or preserved within the territory of China; and (iv) one half (or more) of the directors
or senior management staff having the right to vote habitually reside within the territory of China.

In addition, the