Company: NOAH
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0001410578-25-000852
Chunk: 239

Company: NOAH HOLDINGS LTD
Filing Date: 2025-04-24
Form: 20-F
Item: Item 10
Chunk 239
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i) the senior management and core management departments in charge of its daily operations function mainly in mainland China; (ii) its financial and human resources decisions are subject to determination or approval by persons or bodies in mainland China; (iii) its major assets, accounting books, company seals, and minutes and files of its board and shareholders’ meetings are located or kept in mainland China; and (iv) more than half of the enterprise’s directors or senior management with voting rights reside in mainland China. We have evaluated whether we are a mainland China resident enterprise and we believe that we are not a mainland China resident enterprise for the year ended December 31, 2024.

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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 bodies”. If we are deemed to be a mainland China resident enterprise, we will be subject to mainland China enterprise income tax at the rate of 25% on our global income. In that case, however, dividend income we receive from our mainland China subsidiaries may be exempt from mainland China enterprise income tax because the EIT Law and the EIT Implementation Rules generally provide that dividends received from a mainland China resident enterprise from its directly invested entity that is also a mainland China resident enterprise is exempt from mainland China enterprise income tax. However, as there is still uncertainty as to how the EIT Law and the EIT Implementation Rules will be interpreted and implemented, we cannot assure investors in our ADSs or ordinary shares that we are eligible for such mainland China enterprise income tax exemptions or reductions for any subsequent taxable year.
Provided that our Cayman Islands holding company, Noah Holdings Limited, is not deemed to be a mainland China resident enterprise, holders of our ADSs and ordinary shares who are not mainland China residents will not be subject to mainland China income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares or ADSs. SAT Circular 7 further clarifies that, if a non-resident enterprise derives income by acquiring and selling shares in an offshore listed enterprise in the public market, such income will not be subject to mainland China tax under SAT Circular 7. However, because there is uncertainty as to the application of SAT Circular 7, we and our non-mainland China resident investors may be at risk of being required to file a return and being taxed under SAT Circular 7 and we may be required to expend valuable resources to comply with SAT Circular 7 or to establish that