Company: NTCL
Filing Date: 2025-12-29
Form Type: F-3
Source: 0001104659-25-124826
Chunk: 36

Company: NetClass Technology Inc
Filing Date: 2025-12-29
Form: F-3
Chunk 36
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 of currencies out of Singapore
or across borders and to U.S investors.

Under the laws ofJapan, our subsidiary, NetClass Japan may pay dividends by reference to the total amount of retained earning.
There are no restrictions or limitation under the laws of Japan imposed on the conversion of Japanese Yen into foreign currencies and
the remittance of currencies out of Japan or across borders and to U.S investors.

Under the Inland revenue Ordinance (Chapter 112
of the Laws of Hong Kong), no tax is payable in Hong Kong in respect of dividends received by us from the Hong Kong Subsidiaries.
The laws and regulations of the PRC do not currently have any material impact on transfer of cash from NetClass to NetClass HK
and NetClass International or from NetClass HK and NetClass International to NetClass. There are no restrictions or limitation
under the laws of Hong Kong imposed on the conversion of HK dollar into foreign currencies and the remittance of currencies out of Hong
Kong or across borders and to U.S investors.

Current PRC regulations permit our PRC subsidiaries
to pay dividends to NetClass HK or NetClass International only out of their accumulated profits, if any, determined in accordance
with Chinese accounting standards and regulations. In addition, each of our subsidiaries in the PRC is required to set aside at least
10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital.
Each of such entity in the PRC is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund,
although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves
can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective
companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

| 10 |

To address persistent capital outflows and the
RMB’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and the State Administration
of Foreign Exchange, or SAFE, have implemented a series of capital control measures in the subsequent months, including stricter
vetting procedures for PRC-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan
repayments. The PRC government may continue to strengthen its capital controls and our PRC