Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1594

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1594
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 be subject to a withholding tax rate
of 10%. Under the Notice of the State Administration of Taxation on Issues regarding the Administration of the Dividend Provision in
Tax Treaties promulgated on February 20, 2009, the taxpayer needs to satisfy certain conditions to utilize the benefits under a tax treaty.
These conditions include: (1) the taxpayer must be the beneficial owner of the relevant dividends, and (2) the corporate shareholder
to receive dividends from the PRC entity must have continuously met the direct ownership thresholds during the 12 consecutive months
preceding the receipt of the dividends. Further, under Announcement of the State Administration of Taxation on Issues Relating to “Beneficial
Owner” in Tax Treaties, which took effect on April 1, 2018, a “Beneficial Owner” shall mean a person who has ownership
and control over the income and the rights and property from which the income is derived. To determine the “beneficial owner”
status of a resident of the treaty counterparty who needs to take advantage of the tax treaty benefits, a comprehensive analysis shall
be carried out, taking into account actual conditions of the specific case.

61

Entitlement
to a lower tax rate on dividends according to tax treaties or arrangements between the PRC central government and governments of other
countries or regions is subject to Announcement of State Taxation Administration on Promulgation of the Administrative Measures on Non-resident
Taxpayers Enjoying Treaty Benefits, or Circular 35. Circular 35 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 necessary forms and supporting documents when performing tax filings, which will be subject
to post-tax filing examinations by the relevant tax authorities.

In
addition, in response to the persistent capital outflow in China and the RMB’s depreciation against the U.S. dollar in the fourth
quarter of 2016, the People’s Bank of China and SAFE promulgated a series of capital control measures in early 2017, including
stricter vetting procedures for domestic companies to remit foreign currency for overseas investments, dividends payments and shareholder
loan repayments. The PRC government may continue to strengthen its capital controls, and more restrictions