Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 8

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 8
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 reduced to 5% from a standard rate of 10%. However, if the relevant
tax authorities determine that our transactions or arrangements are for the primary purpose of enjoying a favorable tax treatment, the
relevant tax authorities may adjust the favorable withholding tax in the future. Accordingly, there is no assurance that the reduced 5%
withholding rate will apply to dividends received by our Hong Kong subsidiary from our PRC subsidiaries. This withholding tax will reduce
the amount of dividends we may receive from our PRC subsidiaries.

As of the date of this report, neither the WFOE
nor any of our subsidiaries in Hong Kong has made any dividends or distributions to the Company, the Company has not made any dividends
or distribution to its investors. We intend to keep any future earnings to re-invest in and finance the expansion of our business, and
we do not anticipate that any cash dividends will be paid in the foreseeable future. Under the Cayman Islands law, a Cayman Islands company
may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances may a dividend be paid
if this would result in the company being unable to pay its debts due in the ordinary course of business. We currently do not have cash
management policies and procedures in place that dictate how funds are transferred through our organization. Rather, the funds can be transferred
in accordance with the applicable laws and regulations.

As of the date of this report, no dividends or distributions have been
made between the holding company, its subsidiaries, and consolidated VIEs, or to investors including the U. S. investors. The holding company,
its subsidiaries, and VIE do not have any plan to distribute dividend or settle amounts owed under the VIE Agreements in the foreseeable
future. To the extent cash and/or assets in the business are in the PRC and/or Hong Kong or our PRC and/or Hong Kong entities, including
International Exchange, Oriental Culture HK, the VIE, and the WFOE, such funds and/or assets may not be available to fund operations or
for other use outside of the PRC and/or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability
of us or our subsidiaries by the PRC government to transfer cash and/or assets. The cash transfer among the holding company, its subsidiaries
and VIE is typically transferred through payment for intercompany services or intercompany borrowing between holding company, subsidiaries
and VIE. There are no tax consequences