Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 154

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 154
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 not subject to tax on income or capital gains. Additionally, upon payment of dividends to the shareholders, no Cayman Islands
withholding tax will be imposed.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance,
Oriental Culture HK established in Hong Kong is subject to a16.5% income tax on taxable income generated from operations in Hong Kong.
Payments of dividends from Oriental Culture HK to us are not subject to any Hong Kong withholding tax. The Company did not generate
any revenue from operations in Hong Kong since its inception through December 31, 2024, and therefore is not subject to any income taxes
in Hong Kong.

PRC

The WFOE and VIEs incorporated in the PRC are
governed by the income tax laws of the PRC and the income tax provisions in respect to operations in the PRC is calculated at the applicable
tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under
the Enterprise Income Tax Laws of the PRC (the “ EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “ FIE”)
are usually subject to a unified25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemptions may
be granted on case-by-case basis.

Under the current EIT Law, dividends paid by an
FIE to any of its foreign non-resident enterprise investors are subject to a10% withholding tax. Thus, dividends, if and when payable
by the Company’s PRC subsidiaries to their offshore parent entities, would be subject to a10% withholding tax. A lower tax rate
will be applied if such foreign non-resident enterprise investor’s jurisdiction of incorporation has signed a tax treaty or arrangement
for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with China. There is such a
tax arrangement between the PRC and Hong Kong. Thus, the dividends, if and when payable by the Company’s WFOE to the offshore parent
entity located in Hong Kong, would be subject to a5% withholding tax rather than the statutory rate of10% provided that the offshore
entity located in Hong Kong meets the requirements stipulated by relevant PRC tax regulations. The Company has not provided for deferred
income tax liabilities on the WFOE’s undistributed earnings of $40,788,752and $41,291,171as of December 31, 2024 and 2023, respectively