Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 13

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 3
Chunk 13
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% from a standard rate of 10%. However, if the relevant tax authorities determine that our transactions or arrangements
are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax
in the future. Accordingly, there is no assurance that the reduced 5% withholding rate will apply to dividends received by our Hong Kong
subsidiary from our PRC subsidiaries. This withholding tax will reduce the amount of dividends we may receive from our PRC subsidiaries.

Restrictions on Our Ability to Transfer Cash
Out of Mainland China and Hong Kong

Our PRC subsidiaries’ ability to distribute
dividends is based on their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective
shareholders only out of their accumulated profits, if any, as determined in accordance with PRC accounting standards and regulations.
In addition, under PRC law, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if
any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. These reserves are not distributable
as cash dividends. If any of our Chinese subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt
may restrict its ability to pay dividends to E-Home.

To address persistent capital outflows and the
RMB’s depreciation against the U. S. dollar in the fourth quarter of 2016, the People’s Bank of China and the State Administration
of Foreign Exchange, or SAFE, implemented a series of capital control measures in the subsequent months, including stricter vetting procedures
for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. Limitations
on the ability of our PRC subsidiaries to make remittances to pay dividends could limit our ability to access cash generated by the operations
of those entities, including to make investments or acquisitions that could be beneficial to our business, pay dividends to our shareholders,
or otherwise fund and conduct our business.

Currently, other than complying with the applicable
PRC laws and regulations, we do not have our own cash management policy and procedures that dictate how funds are transferred.

For additional information, see Risk Factors-Risks
Related to Doing Business in China -The Chinese government exerts significant oversight and discretion over the conduct of our business.
The Chinese government may intervene or influence our PRC subsidiaries’ operations at any time,