Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 66

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 66
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) decisions relating to the enterprise’s
financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise’s
primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in the PRC;
and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC.

On March 17, 2017, the State
Tax Administration promulgated the “ Administrative Measures for Adjustment of Special Tax Investigation and Mutual Consultation
Procedures” (State Administration of Tax Practice Announcement No.6, 2017), which came into force on May 1, 2017), which provides
that tax authorities have implemented special tax adjustment monitoring and management for enterprises through related declaration review,
contemporaneous data management, profit level monitoring and other means. If an enterprise is found to have special tax adjustment risks,
the tax authorities may serve a “ Notice” to remind such enterprise of the tax risks.   If an enterprise receives a special
tax adjustment risk alert or finds that it has a special tax adjustment risk, it may adjust the supplementary tax on its own. If the enterprise
adjusts the supplementary tax by itself, the tax authorities may still carry out special tax investigation and adjustment in accordance
with the relevant provisions. If an enterprise requires the tax authorities to confirm the special tax adjustment matters, such as the
pricing principles and methods of related party transactions, the tax authorities shall initiate the special tax investigation procedures.
It also stipulates that if the principle of independent transactions is not met, tax authorities may implement a special tax adjustment
in the full amount of the amount deducted before tax under the following circumstances:

  (1)      The enterprise and its affiliated parties transfer or accept the right to use intangible assets that do not bring economic benefits and collect or pay royalties;  

  (2)      The enterprise pays royalties to related parties that only own intangible assets but do not contribute to their value;  

  (3)      An enterprise establishes a holding company or a financing company overseas for the main purpose of financing and listing, and pays royalties to overseas affiliated parties only for the inciden...  

  (4)      The taxable income or income amount of the enterprise or its affiliated party is reduced because the payment or collection of the price of the labor service transaction between the enterprise a...  

  (5)      The enterprise pays fees to overseas related parties that fail to