Company: XXC
Filing Date: 2025-11-18
Form Type: 20-F
Source: 0001213900-25-111691
Chunk: 4

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-11-18
Form: 20-F
Item: Item 4
Chunk 4
---
 shares by such investors is also subject to PRC tax at a current rate of 10% which in the
case of dividends will be withheld at source if such gain is regarded as income derived from sources within the PRC. See also “ Item 3.
Key Information - D. Risk Factors - Risks Related to Doing Business in China - Dividends
payable to our foreign investors and gains on the sale of our ordinary shares by our foreign investors may be subject to PRC tax” on page
22.

Pursuant
to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax
Evasion on Income (the “ Double Tax Avoidance Arrangement”), the 10% withholding tax rate may be lowered to 5% if a Hong Kong
resident enterprise owns no less than 25% of a PRC company. However, the 5% withholding tax rate does not automatically apply and certain
requirements must be satisfied, including without limitation that (a) the Hong Kong company must be the beneficial owner of the relevant
dividends; and (b) the Hong Kong company must directly hold no less than 25% share ownership in the PRC company during the 12 consecutive
months preceding its receipt of the dividends. In current practice, a Hong Kong company must obtain a tax resident certificate from the
Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident
certificate on a case-by-case basis, we cannot assure you that we will be able to obtain the tax resident certificate from the relevant
Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to dividends
to be paid by our PRC subsidiary to its immediate holding company, Xinxu. As of the date of this annual report, we have not applied for
the tax resident certificate from the relevant Hong Kong tax authority. HK Xinxu intends to apply for the tax resident certificate when
our WFOE plans to declare and pay dividends to HK Xinxu.

Implications of the HFCA Act