Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 39

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 39
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 assets.

Income taxes

Cayman Islands

The Cayman Islands currently levy no taxes on
individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax
or estate duty. There are no other taxes likely to be material to the Company levied by the Government of the Cayman Islands save for
certain stamp duties which may be applicable, from time to time, on certain instruments.

BVI

Victory Hero is incorporated in the BVI and is
not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their
shareholders, no BVI withholding tax will be imposed.

Hong Kong

Wching HK is incorporated in Hong Kong and
is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance
with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. From year of assessment of 2019/2020 onwards,
Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000 (approximately US$255,470), and 16.5% on any part
of assessable profits over HK$2,000,000 (approximately US$255,470). Under Hong Kong tax law, the above-mentioned Hong Kong company
is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

For the years ended December 31, 2022,
2023 and 2024, the Company generated substantially all of its taxable income in the Hong Kong. The tax expenses recorded in the Company’s
result of operations are almost entirely attributable to income earned in the Hong Kong. Should the Company’s operations expand
or change in the future, where the Company generates taxable income in other jurisdictions, the Company’s effective tax rates may
substantially change.

Recently issued accounting pronouncements

See the discussion of the recent accounting pronouncements
contained in Note 2 to the consolidated financial statements, “ Summary of Significant Accounting Policies and Practices.”

Results of Operations

The following table sets forth a summary of the
consolidated results of operations of us for the years indicated:

                                           Years ended December 31,                                
                                                               2022           2023           2024  
                                                                US$            US$            US$  
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