Company: EJH
Filing Date: 2025-08-15
Form Type: F-3
Source: 0001213900-25-077500
Chunk: 23

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-08-15
Form: F-3
Chunk 23
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Dividends and Other Distributions to U.S. Investors and Tax Consequences

As of the date of this report, neither E-Home
nor any of its subsidiaries have paid dividends or made distributions to U.S. investors. We intend to retain most, if not all, of our
available funds and any future earnings to the development and growth of our business in China. We do not expect to pay dividends in the
foreseeable future.

Subject to the passive foreign investment company
rules, the gross amount of any distribution that we make to investors with respect to E-Home’s securities (including any amounts
withheld to reflect PRC withholding taxes) will be taxable as a dividend, to the extent paid out of our current or accumulated earnings
and profits, as determined under United States federal income tax principles.

The PRC Enterprise Income Tax Law and its implementation
rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident
enterprises unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or
regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between mainland China and the Hong Kong
Special Administrative Region, the withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise
may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities determine that our transactions or arrangements
are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax
in the future. Accordingly, there is no assurance that the reduced 5% withholding rate will apply to dividends received by our Hong Kong
subsidiary from our PRC subsidiaries. This withholding tax will reduce the amount of dividends we may receive from our PRC subsidiaries.

Restrictions on Our Ability to Transfer Cash Out of Mainland China and Hong Kong

Our PRC subsidiaries’ ability to distribute
dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective
shareholders only out of their accumulated profits, if any, as determined in accordance with PRC accounting standards and regulations.
In addition, under PRC law, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if
any, to fund certain statutory