Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 69

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 69
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 we could be subject to PRC tax at a rate of 25% on our worldwide income, which could materially
reduce our net income, and we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident
enterprises, including the holders of our Ordinary Shares, and non-resident enterprise shareholders (including our Ordinary Shareholders)
may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated
as sourced from within China. An “indirect transfer” of PRC assets, including a transfer of equity interests in an unlisted
non-PRC holding company of a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct
transfer of the underlying PRC assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose
of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise
income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes,
currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise.

SunCar also may face risks relating to the lack
of PCAOB inspection on its auditor, which may cause our securities to be delisted from a U.S. stock exchange or prohibited from being
traded over-the-counter in the future under the Holding Foreign Companies Accountable Act as amended by the Accelerating Holding Foreign
Companies Accountable Act (the “AHFCAA”) that was signed into law on December 29, 2022, if the PCAOB has determined it is
unable to investigate SunCar’s auditor completely for two consecutive years beginning in 2021. The delisting or the cessation of
trading of our securities, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect
the value of your investment. On December 16, 2021, the PCAOB issued a report to notify the SEC its determinations that it is unable to
inspect or investigate completely registered public accounting firms headquartered in China and Hong Kong, respectively, and identifies
the registered public accounting firms in China and Hong Kong that are subject to such determinations. SunCar’s auditor is headquartered
in Singapore and has been inspected by the PCAOB on