Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 197

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 197
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37 was issued
to replace the Notice on Relevant Issues Concerning Foreign Exchange Administration for PRC Residents Engaging in Financing and Roundtrip
Investments via Overseas Special Purpose Vehicles (“SAFE Circular 75”), issued by SAFE in October 2005. SAFE further enacted
SAFE Circular 13, which allows PRC residents or entities to register with qualified banks in connection with their establishment or control
of an offshore entity established for the purpose of overseas investment or financing. However, remedial registration applications made
by PRC residents that previously failed to comply with SAFE Circular 37 continue to fall under the jurisdiction of the relevant local
branch of SAFE.

In the event that a PRC
shareholder holding interests in a special purpose vehicle fails to fulfill the required SAFE registration, the PRC subsidiaries of that
special purpose vehicle may be prohibited from distributing profits to the offshore parent and from carrying out subsequent cross-border
foreign exchange activities, and the special purpose vehicle may be restricted in its ability to contribute additional capital into its
PRC subsidiary. Failure to comply with the various SAFE registration requirements described above could result in liability under PRC
law for evasion of foreign exchange controls.

Regulations Relating to Tax in the PRC

Enterprise Income Tax

According to the Enterprise
Income Tax Law promulgated by the National People’s Congress in March 2007 and amended in February 2017 and December 2018,
and the Implementation Rules of the Enterprise Income Tax Law of the PRC promulgated by the State Council in December 2007
and amended in April 2019, other than a few exceptions, the income tax rate for both domestic enterprises and foreign-invested enterprises
is 25%. Enterprises are classified as either “resident enterprises” or “non-resident enterprises”. Besides enterprises
established within the PRC, enterprises established outside China whose “de facto management bodies” are located in China
are considered “resident enterprises” and subject to the uniform 25% enterprise income tax rate for their global income.
A non-resident enterprise refers to an entity established under foreign law whose “de facto management bodies” are not within
the PRC but which have an establishment or place of business in the PRC, or which do not have an establishment or place of business in
the PRC but have income sourced within the PRC. An income tax rate of 10% will normally be applicable to dividends declared to non-PRC
resident enterprise investors that do not have an establishment or place of business