Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 492

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 492
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Ezagoo for the years ended December 31, 2024 and 2023, respectively.

We
do not believe that we meet some of the conditions outlined. As a holding company, the key assets and records of Ezagoo including the
resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located and
maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to ours
that have been deemed a PRC “resident enterprise” by the PRC tax authorities. Accordingly, we believe that Ezagoo should
not be treated as a “resident enterprise” for PRC tax purposes if the criteria for “de facto management body”
as set forth in the Notice were deemed applicable to us. However, as the tax residency status of an enterprise is subject to determination
by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term “de facto management body”
as applicable to our offshore entities, we will continue to monitor our tax status.

If
the PRC tax authorities determine that we are a “resident enterprise” for PRC enterprise income tax purposes, a number of
unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide
taxable income as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as non-China
source income would be subject to PRC enterprise income tax at a rate of 25%. Currently, we do not have any non-China source income,
so this would have minimal effect on us; however, if we develop non-China source income in the future, we could be adversely affected.
Second, under the EIT Law and its implementing rules, dividends paid to us from our PRC subsidiaries would qualify as “tax-exempt
income.” Finally, it is possible that future guidance issued with respect to the new “resident enterprise” classification
could result in a situation in which a 10% withholding tax is imposed on dividends we pay to our non-PRC stockholders and with respect
to gains derived by our non-PRC stockholders from transferring our shares. If we were treated as a “resident enterprise”
by the PRC tax authorities, we would be subject to taxation in both the U.S. and China, but our PRC source income will not be taxed in
the U