Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 167

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 10
Chunk 167
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 gains or appreciation and there is no taxation in the nature
of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the Government of the Cayman Islands
except for stamp duties which may be applicable on instruments executed in, or brought within, the jurisdiction of the Cayman Islands.
The Cayman Islands is not party to any double tax treaties. There are no exchange control regulations or currency restrictions in the
Cayman Islands. No stamp duty is payable in respect of the issue of our securities or on an instrument of transfer in respect of our securities.

Hong Kong Taxation

Our subsidiaries that were
incorporated in Hong Kong were subject to 16.5% Hong Kong profits tax on their taxable income assessable profits generated from
operations arising in or derived from Hong Kong for the years of assessment of 2021/2022 and 2020/2021. As from year of assessment
of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable
profits over HK$2,000,000. Under Hong Kong tax laws, our Hong Kong subsidiaries are exempted from Hong Kong income profits
tax on its foreign- derived income profits. In addition, payments of dividends from our Hong Kong subsidiary to us are not subject
to any withholding tax in Hong Kong.

People’s Republic of China Taxation

Under the PRC EIT Law and
its implementation rules, an enterprise established outside the PRC with a “de facto management body” within the PRC is considered
a resident enterprise and will be subject to the enterprise income tax at the rate of 25% on its global income. The implementation rules
define the term “de facto management body” as the body that exercises full and substantial control over and overall management
of the business, production, personnel, accounts and properties of an enterprise. In April 2009, the SAT issued the Circular of the
SAT on Issues Relating to Identification of PRC-Controlled Overseas Registered Enterprises as Resident Enterprises in Accordance
With the De Facto Standards of Organizational Management, or SAT Circular 82, which provides certain specific criteria for determining
whether the “de facto management body” of a PRC-controlled enterprise that is incorporated offshore is located in China.
Although this circular only applies to offshore enterprises controlled by PRC enterprises or P