Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 240

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 240
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the Ministry of Finance and the State Taxation Administration, if an enterprise meets certain criteria and is recognized as a small-scale
and low-profit enterprise, it is entitled to continue enjoying the preferential tax policy under which its taxable income is calculated
at 25% of its actual amount and is then subject to a reduced enterprise income tax rate of 20%. This preferential policy is effective
through December 31, 2027. The EIT is calculated based on the entity’s global income as determined under PRC tax laws and accounting
standards. If the PRC tax authorities determine that 3e Network is a PRC resident enterprise for enterprise income tax purposes, we may
be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises. In addition,
non-resident enterprise shareholders may be subject to a 10% PRC withholding tax on gains realized on the sale or other disposition of
our Class A Ordinary Shares, 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 3e Network
is determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains realized by non-PRC individuals, 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 our non-PRC shareholders would be able to claim the benefits of any tax treaties between their country of tax residence and the
PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC government to indicate whether or
not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC company was deemed to be a PRC tax
resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries may impact non-resident enterprises.

Hong Kong Profits Taxation

Our subsidiary, HK 3e Network, is a Hong Kong entity
subject to the two-tier profits tax rates system, which was introduced under the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the
“Ordinance”) of Hong Kong, and applies for a year of assessment commencing on or after 1 April