Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 231

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 231
---
 the Company’s historical financial statements, with retrospective
adjustments on equity structure to give effect to the Reverse Recapitalization. Hence, there were 72,243,992 50,716,451

F-36

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  16.      TAXATION  

Cayman
Islands

The
Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is 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 8.25 2.0 16.5

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 25

In accordance with the implementation rules of EIT Laws, a qualified
“ High and New Technology Enterprise” (“ HNTE”) is eligible for a preferential tax rate of15%. The HNTE certificate
is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. Nanjing
Scage Automobile Technology Co., Ltd. obtained its HNTE status in 2021 and enjoyed the preferential tax rate for the period of three years
through December 2023. In November 2024, Nanjing Scage Automobile Technology Co., Ltd. renewed the HNTE, which allows it to enjoy
a preferential tax rate of15% for the period of three years through December 2026.

F-37

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  16.      TAXATION  

According to Caishui [2019] No