Company: YCY-WT
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001213900-25-079440
Chunk: 198

Company: AA Mission Acquisition Corp. II
Filing Date: 2025-08-22
Form: S-1
Chunk 198
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 qualify for certain treaty benefits. Under the PRC Enterprise Income Tax Law (“PRC EIT Law”) and its implementation rules, if following our initial business combination we are a non -residententerprise, that is, an enterprise lawfully incorporated pursuant to the laws of a foreign country (region) that has an office or premises established in China with no actual management functions performed in China, or an enterprise that has income derived from or accruing in China although it does not have an office or premises in China, will 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 “PRC 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 PRC 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. 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 -residentTaxpayers Enjoying Treaty Benefits, or Circular 35. Circular 35 provides that non -residententerprises are not required to obtain pre -approvalfrom the relevant tax authority in order to enjoy the reduced withholding tax. Instead, non -residententerprises and their withholding agents may, by self -assessmentand 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 -taxfiling examinations by the relevant tax authorities. In addition, in response to the persistent capital outflow in