Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 214

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 214
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-tier profits tax rates system was introduced
under the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the “Ordinance”) of Hong Kong became effective for the assessment
year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for the first HKD2 million ($254,780) of assessable profits
of a corporation will be subject to the lowered tax rate, 8.25% while the remaining assessable profits will be subject to the legacy tax
rate, 16.5%. The Ordinance only allows one entity within a group of “connected entities” is eligible for the two-tier tax
rate benefit. An entity is a connected entity of another entity if (1) one of them has control over the other; (2) both of them are under
the control (more than 50% of the issued share capital) of the same entity; (3) in the case of the first entity being a natural person
carrying on a sole proprietorship business-the other entity is the same person carrying on another sole proprietorship business. Under
the Ordinance, it is an entity’s election to nominate an entity that will be subject to the two-tier profits tax rate on its Profits
Tax Return. The election is irrevocable.

Living Homeopathy Hong Kong elected the
two-tier profits tax rate for its tax years of 2021/2022, 2022/2023 and 2023/24.

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United States Federal Income Taxation Considerations

The following does not address the tax consequences to any particular investor or to person in special tax situations such as:

| ● | banks; |

| ● | financial institutions; |

| ● | insurance companies; |

| ● | pension plans; |

| ● | cooperative; |

| ● | regulated investment companies; |

| ● | real estate investment 
 trusts;                |

| ● | broker-dealers; |

| ● | persons that elect to mark  
 their securities to market; |

| ● | U.S. expatriates or                     
 former long-term residents of the U.S.; |

| ● | governments or agencies       
 or instrumentalities thereof; |

| ● | tax-exempt entities              
 (including private foundations); |

| ● | persons liable for alternative 
 minimum tax;                   |

| ● | persons holding our Class                                                               
 A Ordinary Shares as part of a straddle, hedging, conversion