Company: SDAWW
Filing Date: 2025-05-21
Form Type: 6-K
Source: 0001213900-25-046449
Chunk: 26

Company: SunCar Technology Group Inc.
Filing Date: 2025-05-21
Form: 6-K
Chunk 26
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IT grants preferential tax treatment to High
and New Technology Enterprises (“HNTEs”) at a rate of %, subject to a requirement that they re-apply for HNTE status every
three years. The Group’s subsidiaries, Shengda Automobile and Shanghai Chengle Network Technology Co., Ltd. were approved as a HNTE
and is entitled to a reduced income tax rate of % beginning November 2018 and renewing the HNTE in December 2021 and December 2024.
The certificate is valid for three years.

According to Taxation [2022] No. 13 which was
effective from January 1, 2022 to December 31, 2024, a small-scale and low-profit enterprise receives a tax preference including
a preferential tax rate of % on its taxable income between RMB million and RMB million. According to Taxation [2023] No. 06 which was
effective from January 1, 2023 to December 31, 2024, a small-scale and low-profit enterprise receives a tax preference including a preferential
tax rate of % on its taxable income below RMB million. According to Taxation [2023] No. 12 which was effective from January 1, 2023
to December 31, 2027, a small-scale and low-profit enterprise receives a tax preference including a preferential tax rate of % on its
taxable income below RMB million.

The income tax benefit consisted of the following components:

|                             |     | For the three months ended 
 March 31,                  | 2024 |   |     |   | 2025 |   |
|:----------------------------|:----|:---------------------------|-----:|:--|:----|:--|-----:|:--|
| Current income tax expenses |     | $                          |  113 |   |     | $ |   58 |   |
| Deferred income tax benefit |     |                            | (312 | ) |     |   | (142 | ) |
| Total income tax benefit    |     | $                          | (199 | ) |     | $ |  (84 | ) |

F-21 SUNCAR TECHNOLOGY GROUP INC NOTES TO UNAUDITEDCONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar thousands, except share and per share data)

A reconciliation between the Group’s actual
benefit for income taxes and the provision at the