Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 50

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4
Chunk 50
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 by Value-Added Tax, which became effective on May 1, 2016. Pursuant to the pilot plan and relevant notices,
VAT is generally imposed in lieu of business tax in the modern service industries, including the VATS, on a nationwide basis. VAT of a
rate of 6% applies to revenue derived from the provision of some modern services. Certain small taxpayers under PRC law are subject to
reduced value-added tax at a rate of 3%. Unlike business tax, a taxpayer is allowed to offset the qualified input VAT paid on taxable
purchases against the output VAT chargeable on the modern services provided.

On April 4, 2018, the Ministry of Finance
and the State Administration of Taxation issued the Notice on Adjustment of VAT Rates, which came into effect on May 1, 2018. According
to the abovementioned notice, the taxable goods previously subject to VAT rates of 17% and 11% respectively become subject to lower VAT
rates of 16% and 10% respectively starting from May 1, 2018. Furthermore, according to the Announcement on Relevant Policies for
Deepening Value-added Tax Reform jointly promulgated by the Ministry of Finance, the State Administration of Taxation and the General
Administration of Customs, which became effective on April 1, 2019, the taxable goods previously subject to VAT rates of 16% and
10% respectively become subject to lower VAT rates of 13% and 9% respectively starting from April 1, 2019. Shanghai Juhao currently
pays VAT at a rate of 13%.

Regulations on Foreign Currency Exchange

The principal regulations governing foreign currency
exchange in China are the Foreign Exchange Administration Regulations, which were most recently amended in August 2008. Under the Foreign
Exchange Administration Regulations, payments of current account items, such as profit distributions, interest payments and trade and
service-related foreign exchange transactions, can be made in foreign currencies without prior approval from SAFE by complying with certain
procedural requirements. By contrast, approval from or registration with appropriate government authorities is required where RMB is to
be converted into foreign currency and remitted out of China to pay capital account items, such as direct investments, repayment of foreign
currency-denominated loans, repatriation of investments and investments in securities outside of China.

In August 2008, SAFE issued the Circular on the
Relevant Operating Issues Concerning the Improvement of the Administration of the