Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 25

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 25
---
and (ii) second or subsequent conviction to a fine at HK$100,000 and to imprisonment for two years, and if the offence continues
after the conviction, to a daily penalty of HK$2,000. It is a defense to the above offence if the data user shows that he exercised all
due diligence to comply with the enforcement notice.

Regulations Related to Hong Kong Taxation

Profits Tax

Pursuant to the Inland Revenue Ordinance (Chapter 112
of the Laws of Hong Kong) (“IRO”), profits tax shall be charged for each year of assessment at the standard rate
on every person carrying on a trade, profession or business in Hong Kong in respect of his assessable profits arising in or derived
from Hong Kong for that year from such trade, profession or business.

Under the two-tiered profits tax rates regime
set out in Schedule 8B to the IRO. The IRO Amendment Bill was signed into law on 28 March 2018. Under the two-tiered profits
tax rates regime, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million
will be taxed at 16.5%. The profits of group entity not qualifying for the two-tiered profits tax rates regime will continued to be taxed
at a flat rate of 16.5%. Accordingly, starting from the year of assessment 2018/19, the Hong Kong profits tax is calculated at 8.25%
on the first HK$2 million of the estimated assessable profits and at 16.5% on the estimated assessable profits above HK$2 million
for the qualifying group entity.

Regulations Related to Intellectual Property

Copyright Law

Under the Copyright Ordinance (Chapter 528
of the Laws of Hong Kong), the copyright in a work gives the copyright owner the exclusive right to, among other things, reproduce
or issue copies of the work to the public. It is an infringement for a third party to do those acts without the consent of or a licence
from the copyright owner. If an infringement occurs, the copyright owner can bring an action seeking damages or an injunction to restrain
the unauthorised copying. A copyright tribunal comprising members from different sectors of the community has been established to handle
copyright licensing disputes and ensure a balancing of interests. The copyright tribunal is established pursuant to section 169 of the
Copyright Ordinance and its scope includes deciding disputes relating to licences offered