Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 202

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 202
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of Taxation on the Interpretation and the Determination of the Beneficial Owners in the Tax Treaties, effective from October 2009, and
the Announcement of State Administration of Taxation on Recognition of “Beneficial Owner” in Tax Treaties, effective on June 29,
2012. Circular 9 provides more flexible guidance to determine whether the applicant engages in substantive business activities. Furthermore,
the Administrative Measures for Non-Resident Taxpayer to Enjoy Treatments under Tax Treaties (the “SAT Circular 60”), which
became effective in November 2015, require that non-resident enterprises which satisfy the criteria for entitlement to tax treaty benefits
may, at the time of tax declaration or withholding declaration through a withholding agent, enjoy the tax treaty benefits, and be subject
to ongoing administration by the tax authorities. In the case where the non-resident enterprises do not apply to the withholding agent
to claim the tax treaty benefits, or the materials and the information stated in the relevant reports and statements provided to the
withholding agent do not satisfy the criteria for entitlement to tax treaty benefits, the withholding agent should withhold tax pursuant
to the provisions of the PRC tax laws. The SAT issued the Announcement of State Taxation Administration on Promulgation of the Administrative
Measures on Non-resident Taxpayers Enjoying Treaty Benefits (the “SAT Circular 35”) on October 14, 2019, which became effective
on January 1, 2020. The SAT Circular 35 further simplified the procedures for enjoying treaty benefits and replaced the SAT Circular
60. According to the SAT Circular 35, no approvals from the tax authorities are required for a non-resident taxpayer to enjoy treaty
benefits, where a non-resident taxpayer self-assesses and concludes that it satisfies the criteria for claiming treaty benefits, it may
enjoy treaty benefits at the time of tax declaration or at the time of withholding through the withholding agent, but it shall gather
and retain the relevant materials as required for future inspection, and accept follow-up administration by the tax authorities. In
addition, according to a tax circular issued by SAT in February 2009, if the main purpose of an offshore arrangement is to obtain
preferential tax treatments, the PRC tax authorities will have the discretion to adjust the preferential tax rate enjoyed by the relevant
offshore entity.

We conduct our business in China through the VIE. The former description of our business is a description of the business of the V