Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 170

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 170
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 on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations
permit payments of dividends by subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting
standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Company is required
to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based
on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“ PRC GAAP”). Appropriations
to the statutory surplus reserve are required to be at least 10 50

As
a result of these PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion
of their net assets to the Company. As of December 31, 2023 and 2024, net assets restricted in the aggregate, which include paid-in capital
and additional paid-in capital of the Company’s subsidiaries, that are included in the Company’s consolidated net assets
were approximately US$ 52,924 nil

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

18. TAXATION

British
Virgin Islands (“ BVI”)

The
Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. Additionally,
dividend payments are not subject to withholdings tax in the BVI.

Taiwan

MKD
Taiwan, a subsidiary incorporated in Taiwan, is subject to a tax rate of 20

Samoa

MKD
Samoa was incorporated in Samoa and, under the current laws of Samoa, is not subject to tax on its income or capital gains. Additionally,
dividend payments are not subject to withholdings tax in Samoa.

Mainland
China

Under
the Law of the People’s Republic of China on Enterprise Income Tax (“ New EIT Law”), which was effective from January
1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25

EIT
grants preferential tax treatment to High and New Technology Enterprises (“ HNTEs”) at a rate of 15 15 15 25

The
income tax expense consisted of the following components:

SCHEDULE
OF INCOME TAX EXPENSE

                                   For the