Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 2

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 2
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 the registration with the State Administration for Market Regulation or its local counterpart
and registration with a local bank authorized by SAFE. In addition, (i) any foreign loan procured by our PRC Operating Entities is required
to be registered with the SAFE or its local branches and (ii) any of our PRC Operating Entities may not procure loans which exceed the
difference between its total investment amount and registered capital or, as an alternative, only procure loans subject to the calculation
approach and limitation as provided by the People’s Bank of China. As a holding company with no operations, our ability to distribute
dividends largely depends on the distribution from our PRC Operating Entities. In addition, if SunCar is determined to be a PRC resident
enterprise for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25% on our worldwide income, which could materially
reduce our net income, and we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident
enterprises, including the holders of our Ordinary Shares, and non-resident enterprise shareholders (including our Ordinary Shareholders)
may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated
as sourced from within China. An “indirect transfer” of PRC assets, including a transfer of equity interests in an unlisted
non-PRC holding company of a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct
transfer of the underlying PRC assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose
of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise
income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes,
currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise.

On February 17, 2023, the China Securities Regulatory
Commission (the “CSRC”) released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the “Trial Measures”) with five interpretive guidelines (together with the New Overseas Listing Rules, collectively,
the “New Overseas Listing Rules”), which came into effect on March 31, 2023