Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 64

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 64
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holds a 25% or more interest in that particular subsidiary in mainland China, or 10% if it holds less than a 25% interest in that subsidiary.
Pursuant to the Notice of the State Administration of Taxation on the Issues concerning the Application of the Dividend Clauses of Tax Agreements, or Circular 81, the 5% withholding tax rate does not automatically apply and certain requirements must be satisfied,
including, without limitation, that (a) the Hong Kong enterprise must be the beneficial owner of the relevant dividends; and (b) the Hong
Kong enterprise must directly hold at least a 25% share ownership in the mainland China enterprise during the 12 consecutive months preceding
its receipt of the dividends. However, a transaction or an arrangement entered into for the primary purpose of enjoying a preferential
tax treatment should not be a reason for the application of the preferential tax treatment under the Hong Kong Tax Treaty. If a taxpayer
inappropriately is entitled to such preferential tax treatment, the competent tax authority has the power to make appropriate adjustments.
According to the Circular on Several Issues Regarding the “Beneficial Owner” in Tax Treaties, which was issued on February
3, 2018, by the State Administration of Taxation and took effect from April 1, 2018, or Circular 9, when determining the applicant’s
status of the “beneficial owner” regarding tax treatments in connection with dividends, interests or royalties in the tax
treaties, several factors, including, without limitation, whether the applicant is obligated to pay more than 50% of his or her income
in 12 months to residents in a third country or region, whether the business operated by the applicant constitutes the actual business
activities, and whether the counterparty country or region to the tax treaties levies any tax or grants a tax exemption on relevant incomes
or levies tax at an extremely low rate, will be taken into account, and such determination will be analyzed according to the actual circumstances
of the specific cases. Circular 9 further provides that an applicant who intends to prove his or her status as the “beneficial owner”
shall submit relevant documents to the tax authority according to the Administrative Measures for Tax Convention Treatment for Non-resident Taxpayers, or Circular 60, which was replaced and repealed by Administrative Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax Treaties, or Circular 35. Circular 35, which was issued in October