Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 20

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 20
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Cayman Islands

We are incorporated in the
Cayman Islands. Under the current laws of the Cayman Islands, we are not subject to income or capital gains taxes. In addition, dividend
payments are not subject to withholdings tax in the Cayman Islands.

British Virgin Islands

Under the current laws of
the British Virgin Islands, entities incorporated in British Virgin Islands are not subject to tax on their income or capital gains.

Hong Kong

According to Tax Amendment
No. 3 Ordinance 2018 published by the Hong Kong government, effective April 1, 2018, under the two-tiered profits tax rates regime, the
first 2.0 million Hong Kong Dollar (“ HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above
HKD2.0 million will be taxed at 16.5%. Under Hong Kong tax laws, Scage HK is not taxed on its foreign-sourced income. Additionally, upon
payments of dividends from Scage HK to its shareholders, no withholding tax in Hong Kong will be imposed.

PRC

Under the PRC Enterprise
Income Tax Law (the “ EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises
is 25%. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto
management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the
PRC income tax at the rate of 25% on its global income. The Implementing Rules of the EIT Law merely define the location of the “de
facto management body “as” the place where the exercising, in substance, of the overall management and control of the production
and business operation, personnel, accounting, property, of a non-PRC company is located.” Based on a review of surrounding facts
and circumstances, the Group does not believe that it is likely that its operations outside of the PRC should be considered as a resident
enterprise for PRC tax purposes for the six months ended December 31, 2024 and 2023.

In accordance with the implementation
rules of EIT Laws, a qualified “ High and New Technology Enterprise” (“ HNTE”) is eligible for a preferential tax
rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply