Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 108

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 108
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 which became effective on November 1, 2015. SAT Circular 60 provides that Non-Resident Enterprises
are not required to obtain pre-approval from the relevant tax authority in order to enjoy the reduced withholding tax. Instead, Non-Resident
Enterprises and their withholding agents may, by self-assessment and on confirmation that the prescribed criteria to enjoy the tax treaty
benefits are met, directly apply the reduced withholding tax rate, and file the necessary forms and supporting documents when performing
tax filings, which will be subject to post tax filing examinations by the relevant tax authorities.

According to the Circular on Several Questions
regarding the “ Beneficial Owner” in Tax Treaties, which was issued on February 3, 2018 by the SAT and took effect on April
1, 2018, when determining the applicant’s status of the “beneficial owner” regarding tax treatments in connection with
dividends, interest or royalties in the tax treaties, several factors, including without limitation, whether the applicant is obligated
to pay more than 50% of his or her income in 12 months to residents in a third country or region, whether the business operated by the
applicant constitutes the actual business activities, and whether the counterparty country or region to the tax treaties does not levy
any tax or grants tax exemption on relevant incomes or levy tax at an extremely low rate, will be taken into account, and it will be
analyzed according to the actual circumstances of the specific cases. This circular further provides that applicants who intend to prove
his or her status as the “beneficial owner” shall submit the relevant documents to the relevant tax bureau according to the
Announcement on Issuing the Measures for the Administration of Non-resident Taxpayers’ Enjoyment of the Treatment under Tax Agreements.

Regulations Relating to Dividend Distribution

The principal regulations governing distribution of
dividends of foreign-invested enterprises include (i) the Company Law, promulgated by the SCNPC on December 29, 1993, and as amended on
December 25, 1999, August 28, 2004, October 27, 2005, December 28, 2013, October 26, 2018 and December 29, 2023, respectively, (ii) the
Foreign-invested Enterprise Law, promulgated by the SCNPC on April 12, 1986, and as amended on October 31,