Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 51

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 51
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 relevant dividends; and (b) the Hong Kong resident enterprise must
directly hold no less than 25% share ownership in the PRC resident enterprise during the 12 consecutive months preceding its receipt
of the dividends. In current practice, a Hong Kong resident enterprise must obtain a tax resident certificate from the Hong Kong tax
authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate
on a case-by-case basis, we cannot assure you that we will be able to obtain a tax resident certificate from the relevant Hong Kong tax
authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to any dividends paid
by our PRC subsidiaries to their immediate holding companies. In addition, non-resident enterprise shareholders may be subject to a 10%
PRC tax on gains realized on the sale or other disposition of common equity if such income is treated as sourced from within the PRC.
It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC
individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to such dividends
or gains, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax treaty. However, it is
also unclear whether non-PRC shareholders of the Company would be able to claim the benefits of any tax treaties between their country
of tax residence and the PRC in the event that the Company is treated as a PRC resident enterprise.

Provided that CHNR, as a BVI holding
company, is not deemed to be a PRC resident enterprise, our shareholders who are not PRC residents will not be subject to PRC income
tax on dividends distributed by us or gains realized from the sale or other disposition of our shares. However, under SAT Circular 7,
where a non-resident enterprise conducts an “indirect transfer” by transferring taxable assets, including, in particular,
equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident
enterprise, being the transferor, or the transferee or the PRC entity which directly owned such taxable assets may report to the relevant
tax authority such indirect transfer. Using a “substance over form” principle, the PRC tax