Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 120

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 120
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 for the VAT taxable sales or imports by a general taxpayer of VAT (hereinafter referred
to as “taxpayer”), the applicable tax rate shall be adjusted to 13% from the original 16% and to 9% from original 10%. For
the exported goods or labor services subject to the applicable tax rate at 16% and the export tax refund rate at 16% originally, the export
tax refund rate is adjusted to 13%; for the exported goods or cross- border taxable acts subject to the tax rate at 10% and export tax
refund rate at 10% originally, the export tax refund rate is adjusted to 9%.

Regulations Relating to Foreign Currency Exchange
and Dividend Distribution

Foreign Currency Exchange

The Renminbi is subject to
foreign exchange control and is not freely convertible into foreign currencies. The State Administration of Foreign Exchange of the PRC,
or the SAFE, is responsible for administering all matters relating to foreign exchange, including the enforcement of the Foreign Exchange
Administration Rules of the PRC (the “ Foreign Exchange Administration Rules”). It was promulgated by the State Council on
January 29, 1996, became effective on April 1, 1996 and was amended on January 14, 1997 and August 5, 2008. Pursuant to the Foreign Exchange
Administration Rules, Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments,
trade and service-related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation
of investments and investments in securities outside of China, unless prior approval is obtained from SAFE and prior registration with
SAFE is made.

In May 2013, SAFE promulgated
the Circular of the SAFE on Printing and Distributing the Administrative Provision on Foreign Exchange in Domestic Direct Investment by
Foreign Investors and Relevant Supporting Documents, or the Circular, which was amended in October 2018 and partially annulled in December
2019. The Circular provides for and simplifies the operational steps and regulations on foreign exchange matters related to direct investment
by foreign investors, including foreign exchange registration, account opening and use, receipt and payment of funds, and settlement and
sales of foreign exchange.

Pursuant to the Circular
of the State Administration of Foreign Exchange on Further Simplifying and Improving the Direct Investment-related Foreign Exchange Administration
Policies, or the SAFE Notice 13, which was promulgated on February