Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 142

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 142
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 imposed in Hong Kong in respect of capital gains from the sale of the Ordinary Shares.                                   |
| ● | Revenue                                                                                                                                
 gains from the sale of Ordinary Shares by persons carrying on a trade, profession or business in Hong Kong where the gains are derived 
 from or arise in Hong Kong from the trade, profession or business will be chargeable to Hong Kong profits tax, which is currently      
 imposed at the rate of 16.5% on corporations and at a maximum rate of 15% on individuals and unincorporated businesses.                |
| ● | Gains                                                                                                                                  
 arising from the sale of Ordinary Shares, where the purchases and sales of Ordinary Shares are effected outside of Hong Kong such      
 as, for example, on the New York Stock Exchange, should not be subject to Hong Kong profits tax.                                       |

According to the current tax practice of the Hong Kong Inland Revenue Department, dividends paid on the Ordinary Shares would not be subject to any Hong Kong tax.

No Hong Kong stamp duty is payable on the purchase and sale of the Ordinary Shares.

People’s Republic of China Taxation

According to the Enterprise Income Tax Law of the PRC (the “Income Tax Law”) and the Implementation Regulations of Enterprise Income Tax Law of the PRC, the enterprise income tax for both domestic and foreign-invested enterprises are unified at 25%.

According to the Income Tax Law, income such as dividends, rental, interest and royalty from the PRC derived by a non-resident enterprise which has no establishment in the PRC or has establishment but the income has no relationship with such establishment is subject to a 10% withholding tax, which may be reduced if the foreign jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement, unless the relevant income is specifically exempted from tax under the applicable income tax laws, regulations, notices and decisions which relate to foreign invested enterprises and their investors.

According to the arrangement between mainland China and Hong Kong, the withholding tax rate for dividends paid by a PRC resident enterprise to a Hong Kong resident enterprise is 5%, if the Hong Kong enterprise owns at least 25% of the PRC enterprise. According to the Notice of the State Administration of Taxation on Issues Relating to the Administration of the Dividend Provision in Tax Treaties, the corporate recipients of dividends distributed by PRC enterprises must satisfy the direct ownership thresholds at all times during the twelve (12) consecutive months preceding the receipt of the dividends.

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Certain United States Federal Income Tax Consider