Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 40

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 40
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 purpose vehicle fails to fulfill the required SAFE registration pursuant to Circular 37 and Circular 13, the PRC subsidiaries
of that special purpose vehicle may be prohibited from making distributions of profit to the offshore parent and from carrying out subsequent
cross-border foreign exchange activities and the special purpose vehicle may be restricted in their ability to contribute additional capital
into its PRC subsidiary. And, failure to comply with the various SAFE registration requirements described above could result in liability
under PRC law for foreign exchange evasion, including (i) up to 30% of the total amount of foreign exchange remitted overseas and
deemed to have been evasive and (ii) in circumstances involving serious violations, a fine of no less than 30% of and up to the total
amount of remitted foreign exchange deemed evasive. Furthermore, the persons-in-charge and other persons at our PRC subsidiaries who are
held directly liable for the violations may be subject to criminal sanctions. These regulations apply to our direct and indirect shareholders
who are PRC residents and may apply to any offshore acquisitions and share transfer that we make in the future if our shares are issued
to PRC residents. See “ Risk Factors - Risks Related to Doing Business in China - PRC regulations relating to offshore
investment activities by PRC residents may limit our PRC subsidiary’s ability to increase its registered capital or distribute profits
to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under PRC law. ”

PRC Laws and Regulations relating to Taxation

Enterprise Income Tax

TheEnterprise Income Tax Law of the People’s
Republic of China(the “ EIT Law”) was promulgated by the Standing Committee of the National People’s Congress on
March 16, 2007 and became effective on January 1, 2008, and was most recently amended on December 29, 2018 (also the effective date).
The Implementation Rules of the EIT Law(the “ Implementation Rules”) were promulgated by the State Council on December
6, 2007 and became effective on January 1, 2008. According to the EIT Law and the Implementation Rules, enterprises are divided into resident
enterprises and non-resident enterprises. Resident enterprises shall pay enterprise income tax on their incomes obtained in and outside
the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC shall pay enterprise income tax on the incomes
obtained by such institutions in and outside