Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 317

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 317
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 | -12.5% |
| Additional R&D deduction               |     |                    | -4.9%  |     |                    | -3.2%  |
| Others                                 |     |                    | 0.1%   |     |                    | –      |
| Effective tax rate                     |     |                    | 7.7%   |     |                    | 9.3%   |

Uncertain tax positions

The Company uses a more likely than not threshold
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As a result, the
impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit
by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being
sustained.

Interest on non-payment of income taxes under
requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold
to avoid payment of penalties recognized, if any, will be classified as a component of the provisions for income taxes. The tax returns
of the Company’s Hong Kong and PRC subsidiaries are subject to examination by the relevant local tax authorities. According to
the Departmental Interpretation and Practice Notes No.11 (Revised) (“DIPN11”) of the Hong Kong Inland Revenue Ordinance (the
“HK tax laws”), an investigation normally covers the six years of the assessment prior to the year of the assessment
in which the investigation commences. In the case of fraud and willful evasion, the investigation is extended to cover ten years
of assessment. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment
of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five
years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the
statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. For the years ended September
30, 2024 and 2023, the Company did not have any material interest or penalties associated with tax positions. The Company did not have
any significant unrecognized uncertain tax positions as of September 30, 2024 or 2023. The Company