Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 201

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 201
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 from May 1, 2016.

On March 20, 2019, the Ministry
of Finance, the SAT and the General Administration of Customs jointly promulgated the Announcement on Relevant Policies for Deepening
Value-Added Tax Reform, which took effect on April 1, 2019 and provides that: (1) with respect to VAT taxable sales acts or import of
goods originally subject to VAT rates of 16% and 10% respectively, such tax rates shall be adjusted to 13% and 9%, respectively; (2) with
respect to purchase of agricultural products originally subject to tax rate of 10%, such tax rate shall be adjusted to 9%; (3) with respect
to purchase of agricultural products for the purpose of production or consigned processing of goods subject to tax rate of 13%, such tax
shall be calculated at the tax rate of 10%; (4) with respect to export of goods and services originally subject to tax rate of 16% and
export tax refund rate of 16%, the export tax refund rate shall be adjusted to 13%; and (5) with respect to export of goods and cross-border
taxable acts originally subject to tax rate of 10% and export tax refund rate of 10%, the export tax refund rate shall be adjusted to
9%.

On December 25, 2024, the
SCNPC promulgated the Value-added Tax Law, which will come into effect and supersede the Provisional Regulations on Value-added Tax on
January 1, 2026. The Value-added Tax Law maintains the VAT rates set by the Announcement on Relevant Policies for Deepening Value-Added
Tax Reform, therefore no adjustments will be made to the current VAT rates.

Dividend Withholding Tax

Pursuant to the Enterprise
Income Tax Law and its implementation rules, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise
in China to its foreign enterprise investors are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction
of incorporation has a tax treaty with China that provides for a different withholding arrangement. Under the China-HK Taxation Arrangement,
income tax on dividends payable to a company resident in Hong Kong that holds more than a 25% equity interest in a PRC resident enterprise
may be reduced to a rate of 5%. In February 2018, the SAT issued the Announcement on Issues concerning Beneficial Owners in Tax Treat