Company: VSA
Filing Date: 2025-11-13
Form Type: 424B5
Source: 0001213900-25-109735
Chunk: 88

Company: VisionSys AI Inc
Filing Date: 2025-11-13
Form: 424B5
Chunk 88
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 reasonable commercial purpose. As a result, we and our non-resident investors in such transactions may become at risk of being
taxed under SAT Bulletin 7, and we may be required to expend valuable resources to comply with SAT Bulletin 7 or to establish that we
should not be taxed under the general anti-avoidance rule of the EIT Law, which may have a material adverse effect on our financial
condition and results of operations.

<div align='center'>S-50</div>

Dividend Withholding Tax

Pursuant to the EIT Law
and its implementation rules, if a non-resident enterprise has not set up an organization or establishment in the PRC, or has set up an
organization or establishment but the income derived has no actual connection with such organization or establishment, it will be subject
to a withholding tax on its PRC-sourced income at a rate of 10%. Pursuant to the Arrangement between Mainland China and the Hong Kong
Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, the withholding tax rate in respect to the
payment of dividends by a PRC enterprise to a Hong Kong enterprise is reduced to 5% from a standard rate of 10% if the Hong Kong enterprise
directly holds at least 25% of the PRC enterprise. Pursuant to the Notice of the SAT on the Issues concerning the Application of the Dividend
Clauses of Tax Agreements, or SAT Circular 81, promulgated by the SAT in February 2009, a Hong Kong resident enterprise must meet
the following conditions, among others, in order to enjoy the reduced withholding tax: (1) it should be a company as provided in
the tax treaty; (2) it must directly own the required percentage of equity interests and voting rights in the PRC resident enterprise;
and (3) it must have directly owned such percentage in the PRC resident enterprise throughout the 12 months prior to receiving the
dividends. In August 2015, the SAT promulgated the Administrative Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax
Treaties, or SAT Circular 60, which became effective in November 2015 and was repealed in January 2020. SAT Circular 60 provides
that non-resident enterprises are not required to obtain pre-approval from the relevant tax authority in order to enjoy the reduced withholding
tax rate. Instead, non-resident enterprises and their