Company: AEHL
Filing Date: 2025-08-05
Form Type: 20-F/A
Source: 0001641172-25-022290
Chunk: 43

Company: Antelope Enterprise Holdings Ltd
Filing Date: 2025-08-05
Form: 20-F/A
Chunk 43
---

non-resident investor’s investment in us). In additional, the PRC resident enterprise may be required to provide necessary assistance
to support the enforcement of Circular 698. On February 3, 2015, the State Administration of Tax issued a Public Notice Regarding Certain
Corporate Income Tax Matters on Indirect Transfer of Properties by Non-tax Resident Enterprise, or Public Notice 7. Public Notice 7 has
introduced a new tax regime that is significantly different from that under Circular 698. Public Notice 7 extends its tax jurisdiction
to not only indirect transfers set forth under Circular 698 but also transactions involving transfer of other taxable assets, through
the offshore transfer of a foreign intermediate holding company. In addition, Public Notice 7 provides clearer criteria the Circular 698
on how to assess reasonable commercial purposes and has introduced safe harbors for internal group restructurings and the purchase and
sale of equity through a public securities market. Public Notice 7 also brings challenges to both the foreign transferor and transferee
(or other person who is obligated to pay for the transfer) of the taxable assets. Where a non-resident enterprise conducts an “indirect
transfer” by transferring the taxable assets indirectly by disposing of the equity interests of an overseas holding company, the
non-resident enterprise being the transferor, or the transferee, or the PRC entity which directly owned the taxable assets may report
to the relevant tax authority such indirect transfer. Using a “substance over form” principle, the PRC tax authority may re-characterize
such indirect transfer as a direct transfer of the equity interests in the PRC tax resident enterprise and other properties in China,
As a result, gains derived from such indirect transfer may be subject on PRC enterprise income tax, and the transferee or other person
who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of up to 10% for the transfer
of equity interests in a PRC resident enterprise. Both the transferor and the transferee may be subject to penalties under PRC tax laws
if transferee fails to withhold the taxes and the transferor fails to pay the taxes.

| 22 |

We face uncertainties with respect
to the reporting and consequences of private equity financing transactions, share exchange or other transactions involving the transfer
of shares in our company by investors that are non-PRC resident enterprises, or sale or purchase of shares in other non-PRC resident companies
or other taxable assets by