Company: STAK
Filing Date: 2025-11-05
Form Type: 20-F
Source: 0001493152-25-020818
Chunk: 131

Company: STAK Inc.
Filing Date: 2025-11-05
Form: 20-F
Item: Item 10
Chunk 131
---
, holding or selling the Ordinary Shares, and does not take into account the specific circumstances of any particular investors, some of whom may be subject to special rules. Accordingly, holders or prospective purchasers (particularly those subject to special tax rules, such as banks, dealers, insurance companies and tax-exempt entities) should consult their own tax advisors regarding the tax consequences of purchasing, holding or selling the Ordinary Shares. Under the current laws of Hong Kong:

●                                                                     No                                                                  
                     profit tax is imposed in Hong Kong in respect of capital gains from the sale of the Ordinary Shares.                 
------------------------------------------------------------------------------------------------------------------------------------------
●   Revenue                                                                                                                               
    gains from the sale of Ordinary Shares by persons carrying on a trade, profession or business in Hong Kong where the gains are derived
    from or arise in Hong Kong from the trade, profession or business will be chargeable to Hong Kong profits tax, which is currently     
    imposed at the rate of 16.5% on corporations and at a maximum rate of 15% on individuals and unincorporated businesses.               
●   Gains                                                                                                                                 
    arising from the sale of Ordinary Shares, where the purchases and sales of Ordinary Shares                                            
    are effected outside of Hong Kong such as, for example, on the New York Stock Exchange, should                                        
    not be subject to Hong Kong profits tax.                                                                                              

99
--
 

According to the current tax practice of the Hong Kong Inland Revenue Department, dividends paid on the Ordinary Shares would not be subject to any Hong Kong tax.
 
No Hong Kong stamp duty is payable on the purchase and sale of the Ordinary Shares.
 
People’s Republic of China Taxation
 
According to the Enterprise Income Tax Law of the PRC (the “Income Tax Law”) and the Implementation Regulations of Enterprise Income Tax Law of the PRC, the enterprise income tax for both domestic and foreign-invested enterprises are unified at 25%.
 
According to the Income Tax Law, income such as dividends, rental, interest and royalty from the PRC derived by a non-resident enterprise which has no establishment in the PRC or has establishment but the income has no relationship with such establishment is subject to a 10% withholding tax, which may be reduced if the foreign jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement, unless the relevant income is specifically exempted from tax under the applicable income tax laws, regulations, notices and decisions which relate to foreign invested enterprises and their investors.
 
According to the arrangement between mainland China and Hong Kong