Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 29

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 29
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 Network are subject to PRC taxes, including withholding taxes.

Pursuant to the Arrangement between the Mainland China and the Hong Kong
Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,
or the Comprehensive Double Taxation Arrangement, dividends paid by a PRC company to a Hong Kong resident enterprise may be taxed in accordance
with the laws of the PRC and the rate of the tax so charged, in 2 tiers, may be lowered from 10% to 5% of the gross amount of the dividends
if the Hong Kong resident enterprise (being the beneficial owner of the dividends) directly owns no less than
25% of the capital of the PRC company. However, the 5% withholding tax rate does not automatically apply and certain requirements must
be satisfied, including without limitation that (a) the Hong Kong company must be the beneficial owner of the relevant dividends;
and (b) the Hong Kong company must directly hold no less than 25% of share ownership in the PRC company during the twelve (12) consecutive months
preceding its receipt of the dividends. In current practice, a Hong Kong company must obtain a tax resident certificate (i.e. a Certificate
of Hong Kong Resident Status) from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong
tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that we will be able to obtain
the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under
the Comprehensive Double Taxation Arrangement with respect to dividends to be paid by our PRC subsidiaries to their immediate holding
company, HK 3e Network. As of the date of this prospectus, we have not applied for the tax resident certificate from the relevant
Hong Kong tax authority. HK 3e Network intends to apply for the tax resident certificate when Guangzhou Sanyi Network plans to declare
and pay dividends to HK 3e Network. See “Risk Factors — Risks Related to Doing Business in China —We face uncertainty regarding the PRC tax reporting obligations and consequences for certain indirect transfers of the stock of our operating company.”

Industry Overview

The PRC software and information technology service
industry (“Software Industry”) displayed a steady development trend in 2023. Statistics from the Operation Monitoring and
Coordination Bureau of