Company: EJH
Filing Date: 2025-08-11
Form Type: 424B5
Source: 0001213900-25-074324
Chunk: 70

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-08-11
Form: 424B5
Chunk 70
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 applicable to dividends payable by Chinese companies to non-PRC-resident
enterprises unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or
regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between mainland China and the Hong Kong
Special Administrative Region, the withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise
may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities determine that our transactions or arrangements
are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax
in the future. Accordingly, there is no assurance that the reduced 5% withholding rate will apply to dividends received by our Hong Kong
subsidiary from our PRC subsidiaries. This withholding tax will reduce the amount of dividends we may receive from our PRC subsidiaries.

Restrictions on Our Ability to Transfer Cash Out of Mainland China and Hong Kong

Our PRC subsidiaries’ ability to distribute
dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective
shareholders only out of their accumulated profits, if any, as determined in accordance with PRC accounting standards and regulations.
In addition, under PRC law, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if
any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. These reserves are not distributable
as cash dividends. If any of our Chinese subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt
may restrict its ability to pay dividends to E-Home.

To address persistent capital outflows and the
RMB’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China, and the State Administration
of Foreign Exchange, or SAFE, implemented a series of capital control measures in the subsequent months, including stricter vetting procedures
for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. The
PRC government may continue to strengthen its capital controls and our PRC subsidiaries’ dividends and other distributions may be
subject to tightened scrutiny in the future. The PRC government also imposes controls on the conversion of RMB into foreign currencies
and