Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 85

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 85
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People’s Republic of China Taxation

Enterprise Income Tax

PRC enterprise income tax is calculated based
on taxable income, which is determined under (1) the PRC Enterprise Income Tax Law, promulgated by the NPC and implemented in January 2008
and amended in December 2018, or the EIT Law, and (2) the implementation rules to the EIT Law promulgated by the State
Council in January 2008 and amended in April 2019. The EIT Law imposes a uniform enterprise income tax rate of 25% on all resident
enterprises in the PRC, including foreign-invested enterprises and domestic enterprises, unless they qualify for certain exceptions. According
to the EIT Law and its implementation rules, the income tax rate of an enterprise that has been determined to be a high and new technology
enterprise may be reduced to 15%.

In addition, according to the EIT Law, enterprises
registered in countries or regions outside the PRC but have their “de facto management bodies” located within China may be
considered as PRC resident enterprises and are therefore subject to PRC enterprise income tax at the rate of 25% on their worldwide income.
Though the implementation rules of the EIT Law define “de facto management bodies” as “establishments that carry
out substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc.,
of an enterprise,” the only detailed guidance currently available for the definition of “de facto management body”
as well as the determination and administration of tax residency status of offshore-incorporated enterprises are set forth in the Notice
Regarding the Determination of Chinese-Controlled Overseas Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of De
Facto Management Bodies promulgated by SAT in April 2009 (“SAT Circular 82”), the Administrative Measures for Enterprise
Income Tax of Chinese-Controlled Overseas Incorporated Resident Enterprises (Trial Version) issued by the SAT in July 2011 (“SAT
Bulletin No. 45”), and the Notice on Issues Related To Implementation of Determination of Tax Resident Enterprise on the Basis
of De Facto Management Bodies issued by the SAT in January 2014 (“SAT Bulletin No. 9”), all of which provide guidance
on the administration as well as the determination of the tax residency status of a Chinese-controlled offshore-incorporated enterprise,
defined as an enterprise that is incorporated under the law of a foreign country or territory and that