Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 51

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 10
Chunk 51
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C
shareholders

The
SAT and the MOF issued the Notice of Ministry of Finance and State Administration of Taxation on Several Issues relating to Treatment
of Corporate Income Tax Pertaining to Restructured Business Operations of Enterprises (the “ SAT Circular 59”) in April 2009,
which became effective on January 1, 2008. On October 17, 2017, the SAT issued the Announcement of the State Administration of Taxation
on Issues Relating to Withholding at Source of Income Tax of Non-resident Enterprises, which became effective on December 1, 2017 and
was amended on June 15, 2018 (the “ SAT Circular 37”). By promulgating and implementing the SAT Circular 59 and the SAT Circular
37, the PRC tax authorities have enhanced their scrutiny over the direct or indirect transfer of equity interests in a PRC resident enterprise
by a non-PRC resident enterprise.

Pursuant
to the Arrangement between the Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and
Tax Evasion on Income, or the Tax Arrangement, where a Hong Kong resident enterprise which is considered a non-PRC tax resident enterprise
directly holds at least 25% of a PRC enterprise, the withholding tax rate in respect of the payment of dividends by such PRC enterprise
to such Hong Kong resident enterprise is reduced to 5% from a standard rate of 10%, subject to approval of the PRC local tax authority.
Pursuant to the Circular of the State Administration of Taxation on the Issues concerning the Application of the Dividend Clauses of
Tax Agreements (“ Circular 81”), a resident enterprise of the counter-party to such Tax Arrangement should meet all of the
following conditions, among others, in order to enjoy the reduced withholding tax under the Tax Arrangement: (i) it must take the form
of a company; (ii) it must directly own the required percentage of equity interests and voting rights in such PRC resident enterprise;
and (iii) it should directly own such percentage of capital in the PRC resident enterprise anytime in the 12 consecutive months prior
to receiving the dividends. Furthermore, the Administrative Measures for Non-Resident Enterprises to Enjoy Treatments under Tax Treaties,
or the Administrative Measures, which became effective in November 2015, requires that the non-resident taxpayer shall determine whether
it may enjoy the treatments under relevant tax treaties