Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 161

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 161
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the payment of a dividend or capital to any holder of our Ordinary Shares, as the case may be, nor will gains derived from the disposal
of our Ordinary Shares be subject to Cayman Islands income or corporation tax.

The Cayman Islands enacted
the International Tax Co-operation (Economic Substance) Act (2021 Revision) together with the Guidance Notes published by the Cayman
Islands Tax Information Authority from time to time. The Company is required to comply with the economic substance requirements from
July 1, 2019, and make an annual report in the Cayman Islands as to whether or not it is carrying on any relevant activities and if it
is, it must satisfy an economic substance test.

Hong Kong

Our subsidiary incorporated
in Hong Kong is subject to Hong Kong profit tax at a rate of 16.5%. No Hong Kong profit tax has been levied as we did not have an assessable
profit that was earned in or derived from the Hong Kong subsidiary during the periods presented. Hong Kong does not impose a withholding
tax on dividends.

PRC

In March 2007, the
National People’s Congress of China enacted the Enterprise Income Tax Law, which became effective on January 1, 2008, and
was last amended on December 29, 2018. The Enterprise Income Tax Law provides that enterprises organized under the laws of jurisdictions
outside China with their “de facto management bodies” located within China may be considered PRC resident enterprises and
therefore subject to the PRC EIT at the rate of 25% on their worldwide income. The Implementing Rules of the Enterprise Income Tax Law
further define the term “de facto management body” as the management body that exercises substantial and overall management
and control over the business, personnel, accounts and properties of an enterprise.

While we do not currently
consider our company or any of our overseas subsidiaries to be a PRC resident enterprise, there is a risk that the PRC tax authorities
may deem our company or any of our overseas subsidiaries to be a PRC resident enterprise since a substantial majority of the members
of our management team as well as the management team of our overseas subsidiaries are located in China, in which case we or the applicable
overseas subsidiaries, as the case may be, would be subject to the PRC EIT at the rate of 25% on worldwide income. If the PRC tax authorities
determine that our Cayman Islands holding company is a “resident