Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 52

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 52
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 authority may disregard the existence
of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding
or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee
would be obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident
enterprise. We and our non-PRC 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 Bulletin 37, or to establish that we should not be taxed under
SAT Circular 7 and SAT Bulletin 37.

In addition to the uncertainty in how
the new resident enterprise classification could apply, it is also possible that the rules may change in the future, possibly with retroactive
effect. If we are required under the Enterprise Income Tax Law to withhold PRC income tax on our dividends payable to our foreign shareholders,
including U.S. investors, or if you are required to pay PRC income tax on the transfer of our shares under the circumstances mentioned
above, the value of your investment in our shares may be materially and adversely affected. These rates may be reduced by an applicable
tax treaty, but it is unclear whether, if we are considered a PRC resident enterprise, holders of our shares would be able to claim the
benefit of income tax treaties or agreements entered into between China and other countries or areas. Any such tax may reduce the returns
on your investment in our shares.

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Any failure to comply with PRC regulations regarding the registration requirements for employee stock incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.

In February 2012, SAFE promulgated the
Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plans of Overseas
Publicly-Listed Companies, replacing earlier rules promulgated in March 2007. Pursuant to these rules, PRC citizens and non-PRC citizens
who reside in China for a continuous period of not less than one year who participate in any stock incentive plan of an overseas publicly
listed company, subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which could be the
PRC subsidiary of such overseas-listed company, and complete