Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 255

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 255
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 tax

The Inland Revenue Ordinance
provides, among other things, that profits tax shall be charged on every person carrying on a trade, profession or business in Hong Kong
in respect of his or her assessable profits arising in or derived from Hong Kong at the standard rate of 8.25% on assessable profits
up to $2,000,000 and 16.5% on any part of assessable profits over $2,000,000 for corporate taxpayers, as at the date of this prospectus.
The Inland Revenue Ordinance also contains detailed provisions relating to, among other things, permissible deductions for expenses,
set-offs for losses and allowances for depreciations of capital assets.

No tax is imposed in Hong Kong
in respect of capital gains from the sale of shares. However, trading gains from the sale of shares by persons carrying on a trade, profession
or business in Hong Kong, where such gains are derived from or arise in Hong Kong, will be subject to Hong Kong profits
tax. Certain categories of taxpayers (for example, financial institutions, insurance companies and securities dealers) are likely to
be regarded as deriving trading gains rather than capital gains unless these taxpayers can prove that the investment securities are held
for long-term investment purposes.

Stamp Duty Ordinance (Chapter 117 of the Laws of Hong Kong)

Under the Stamp Duty Ordinance,
the Hong Kong stamp duty, currently charged at the ad valorem rate of 0.13% (commencing from August 1, 2021) on the higher
of the consideration for, or the market value of, the shares, will be payable by the purchaser on every purchase and by the seller on
every sale of Hong Kong shares (in other words, a total of 0.26% is currently payable on a typical sale and purchase transaction
of Hong Kong shares). In addition, a fixed duty of HK$5 is currently payable on any instrument of transfer of Hong Kong shares.
Where one of the parties is a resident outside Hong Kong and does not pay the ad valorem duty due by it, the duty not paid will
be assessed on the instrument of transfer (if any) and will be payable by the transferee. If no stamp duty is paid on or before the due
date, a penalty of up to ten times the duty payable may be imposed.

Estate duty

Hong Kong estate duty
was abolished effective from February 11, 2006. No Hong Kong estate duty is payable by shareholders in