Company: HMDCF
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001410578-25-000377
Chunk: 685

Company: HUTCHMED (China) Ltd
Filing Date: 2025-03-19
Form: 20-F
Item: Item 16K
Chunk 685
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 the conditions or requirements pursuant to the relevant PRC tax regulations regarding beneficial ownership. Since the equity holder of the equity investee of the Company is a Hong Kong incorporated company and Hong Kong tax resident, and meet the aforesaid conditions or requirements, the Company has used5% to provide for deferred tax liabilities on retained earnings which are anticipated to be distributed. As at December 31, 2024, 2023 and 2022, the amounts accrued in deferred tax liabilities relating to withholding tax on dividends were determined on the basis that100% of the distributable reserves of the equity investee operating in the PRC will be distributed as dividends.
Pursuant to PRC Bulletin on Issues of Enterprise Income Tax and Indirect Transfers of Assets by Non-PRC Resident Enterprises, an indirect transfer of a PRC resident enterprise by a non-PRC resident enterprise, via the transfer of an offshore intermediate holding company, shall be subject to PRC withholding tax under certain conditions.

F-46

Table of Contents

(c) The Company’s subsidiary in the US with operations primarily in New Jersey is subject to US taxes, primarily federal and state taxes, which have been provided for at approximately 21% (federal)...
The reconciliation of the Group’s reported income tax expense to the theoretical tax amount that would arise using the tax rates of the Company against the Group’s (loss)/income before income taxes and equity in earnings of an equity investee is as follows:
Year Ended December 31,
2024 2023 2022
──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
(in US$ ’ 000)
(Loss)/income before income taxes and equity in earnings of an equity investee ( 1,107) 58,308 ( 410,422)
Tax calculated at the statutory tax rate of the Company ( 183) 9,621 ( 67,720)
Tax effects of:
Different tax rates applicable in different jurisdictions ( 2,400) 541 6,316
Tax valuation allowance 24,254 26,629 93,243
Preferential tax rate difference ( 18) ( 3,065) ( 171)
Preferential tax deduction and credits ( 22,608) ( 32,667) ( 40,791)
Expenses not deductible for tax purposes 10,129 7,086 8,886
Withholding tax on undistributed earnings of a