Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 248

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 248
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 the criteria set forth in the circular may reflect the SAT’s general position on how
the “de facto management body” test should be applied in determining the tax resident status of all offshore enterprises.

| 156 |

According to Circular 82,
an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by
virtue of having a “de facto management body” in China and will be subject to PRC enterprise income tax on its worldwide
income only if all of the following criteria are met: (i) the places where senior management and senior management departments that
are responsible for daily production, operation and management of the enterprise perform their duties are mainly located within the territory
of China; (ii) financial decisions (such as money borrowing, lending, financing and financial risk management) and personnel decisions
(such as appointment, dismissal and salary and wages) are decided or need to be decided by organizations or persons located within the
territory of China; (iii) main property, accounting books, corporate seal, the board of directors and files of the minutes of shareholders’
meetings of the enterprise are located or preserved within the territory of China; and (iv) one half (or more) of the directors
or senior management staff having the right to vote habitually reside within the territory of China.

In addition, the Administrative
Measures for Enterprise Income Tax of Chinese-Controlled Overseas Incorporated Resident Enterprises (Trial Version), or Bulletin 45,
which became effective in September 2011, further clarifies certain issues related to the determination of tax resident status. Bulletin
45 also specifies that when provided with a resident Chinese-controlled, offshore-incorporated enterprise’s copy of its recognition
of residential status, a payer does not need to withhold a 10% income tax when paying certain PRC-source income, such as dividends, interest
and royalties to such Chinese-controlled offshore-incorporated enterprise.

We believe that our Cayman
Islands holding company, Zerolimit Cayman, is not a PRC resident enterprise for PRC tax purposes. Zerolimit Cayman is a company incorporated
outside China. As a holding company, its key assets are its ownership interests in its subsidiaries, and its key assets are located,
and its records (including the resolutions of its board of directors and the resolutions of its shareholders) are maintained, outside
China. As such, we do not believe that our Company meets all of the conditions above or