Company: ABLV
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001213900-25-034677
Chunk: 63

Company: Able View Global Inc.
Filing Date: 2025-04-23
Form: 20-F
Item: Item 3
Chunk 63
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 outside of China with “de facto
management bodies” located in China may be considered PRC tax resident enterprises for tax purposes and may be subject to the PRC
enterprise income tax at the rate of 25% on their global income. “ De facto management body” refers to a managing body that
exercises substantive and overall management and control over the production and business, personnel, accounting books and assets of an
enterprise. The STA issued the Notice Regarding the Determination of Chinese-Controlled Offshore-Incorporated Enterprises as PRC Tax
Resident Enterprises on the Basis of De Facto Management Bodies, or Circular 82, on April 22, 2009, with retroactive effect from
January 1, 2008. Circular 82 provides certain specific criteria for determining whether the “de facto management body”
of a Chinese-controlled offshore-incorporated enterprise is located in China. Although Circular 82 only applies to offshore enterprises
controlled by PRC enterprises, not those controlled by foreign enterprises or individuals, the determining criteria set forth in Circular
82 may reflect the STA’s general position on how the “de facto management body” test should be applied in determining
the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises. If we were to be considered
a PRC resident enterprise, we would be subject to PRC enterprise income tax at the rate of 25% on our global income. In such case, our
profitability and cash flow generated from mainland China may be materially reduced as a result of our global income being taxed under
the EIT Law. We believe that none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. However, the tax
resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation
of the term “de facto management body.”

Dividends payable to our foreign investors
and gains on the sale of our ordinary shares or ordinary shares by our foreign investors may become subject to PRC tax law.

Under the EIT Law and its implementation regulations
issued by the State Council, a 10% PRC withholding tax is applicable to dividends payable to investors that are non-resident enterprises,
which do not have an establishment or place of business in the PRC or which have such establishment or place of business but the dividends
are not effectively connected with such establishment or place of business, to the extent such dividends are derived from sources within