Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 241

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 241
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 2018.

Under the two-tier profits tax rates regime,
the first HKD 2 million of assessable profits of a corporation will be subject to the lowered tax rate of 8.25% while the
remaining assessable profits will be subject to the tax rate of 16.5%. If an entity has one or more “connected
entities”, the Ordinance only allows the one which is nominated to be chargeable at the two-tiered rates to be eligible for
the two-tier tax rate benefit, and the others are not qualified for the two-tiered profits tax rates for the same year of
assessment. The nominated entity may make an election for the two-tiered profits tax rates by declaring in its Profits Tax Return,
and the election, once made, is irrevocable. An entity is a connected entity of another entity if (1) one of them has control over
the other; (2) both of them are under the control of the same entity; or (3) in the case of the first entity being a natural person
carrying on a sole proprietorship business — the other entity is the same person carrying on another sole
proprietorship business. In general, an entity has control over another entity if the first-mentioned entity, whether directly or
indirectly through one or more than one other entity, (1) owns or controls more than 50% in aggregate of the issued share capital of
the latter entity, (2) is entitled to exercise or control the exercise of more than 50% in aggregate of the voting rights in the
latter entity; or (3) is entitled to more than 50% in aggregate of the capital or profits of the latter entity.

HK 3e Network had not derived any estimated assessable
profits for Hong Kong profits tax purpose for the years ended 31 December 2022, 31 December 2021 and 31 December 2020.

In respect of foreign derived income received by
our Hong Kong subsidiary (such as dividends paid to HK 3e Network by Guangzhou 3e Network and Guangzhou Sanyi Network), under Hong Kong’s
Foreign-sourced Income Exemption regime effective from 1 January 2023, income arising in or derived from a territory outside Hong Kong
(such as dividends) received by a Hong Kong entity which is a multinational enterprise entity (“MNE entity”) carrying on business
in Hong Kong may be regarded as specified foreign-sourced income which