Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 87

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 87
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 in the PRC, or which have established agencies or offices in the PRC but whose
income has no association with such agencies or offices, shall pay enterprise income tax on their income earned from inside the PRC, and
such income of nonresident enterprises for which the payer thereof shall be the withholding agent, shall be taxed at the reduced rate
of 10% and shall be withheld at the source.

Withholding income tax and
international tax treaties. Pursuant to the EIT Law and the EIT Law Implementation Rules, dividends generated after January 1,
2008, and payable by a foreign-invested enterprise in PRC to its foreign investors are subject to a 10% withholding tax, unless any such
foreign investor’s jurisdiction of registration and incorporation has entered into a tax agreement with PRC which provides a different
withholding tax arrangement.

Pursuant to the Arrangement between
Mainland China and the Hong Kong Special Administrative Region for Avoidance of Double Taxation and Prevention of Tax Evasion, the applicable
withholding income tax rate for any dividends declared by a Chinese company is 5% for a shareholder being a Hong Kong resident holding
at least 25% interest in its registered capital, or 10% for a shareholder being a Hong Kong resident holding less than 25% interest in
its registered capital.

According to the Administrative
Measures for Tax Convention Treatment for Non-resident Taxpayers, any non-resident taxpayer meeting conditions for enjoying the convention
treatment may be entitled to the convention treatment when filing a tax return or making a withholding declaration through a withholding
agent, subject to the subsequent administration by the tax authorities. The term “non-resident taxpayers” refers to the taxpayers
other than the PRC tax residents under the Provisions of domestic tax laws or conventions on the avoidance of double taxation signed by
the government of the People’s Republic of China with foreign countries (including the tax arrangements signed with the Hong Kong
Special Administrative Region and the Macau Special Administrative Region (hereinafter collectively referred to as the “ Tax Conventions”)
(including non-resident enterprises and non-resident individuals). The convention treatment means the deduction of or exemption from the
enterprise income tax or individual income tax obligations required by the provisions of PRC tax laws, under the tax conventions or tax
clauses of conventions on aviation, sea transportation, and automobile transportation, as well as the agreements or exchanges of letters
on the mutual-exemption from tax on income from international transportation