Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 146

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 10
Chunk 146
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RC resident enterprises under the Enterprise Income Tax Law, are subject to enterprise income
tax on their worldwide taxable income as determined under the Enterprise Income Tax Law and accounting standards at a rate of 25%.

In addition, the Enterprise Income Tax Law provides
that enterprises organized under the laws of jurisdictions outside China with their “de facto management bodies” located within
China may be considered PRC resident enterprises and therefore subject to PRC enterprise income tax at the rate of 25% on their worldwide
income. The Implementing Rules of the Enterprise Income Tax Law further define the term “de facto management body” as the
management body that exercises substantial and overall management and control over the business, personnel, accounts, and properties of
an enterprise. While we do not currently consider our company or any of our overseas subsidiaries to be a PRC resident enterprise, there
is a risk that the PRC tax authorities may deem our company or any of our overseas subsidiaries as a PRC resident enterprise since a substantial
majority of the members of our management team as well as the management team of our overseas subsidiaries are located in China.

If the PRC tax authorities determine that our
company or any of our overseas subsidiaries is a “resident enterprise” for PRC enterprise income tax purposes, a number of
unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide
taxable income, as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as non-China
source income would be subject to PRC enterprise income tax at a rate of 25%. Second, under the Enterprise Income Tax Law and its implementing
rules, we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises,
including the holders of our ordinary shares. Finally, non-resident enterprise shareholders may be subject to a 10% PRC tax on gains realized
on the sale or other disposition of ordinary shares, if such income is treated as sourced from within China. Furthermore, if we are deemed
a PRC resident enterprise, dividends paid to individual investors who are non-PRC residents and any gain realized on the transfer of ordinary
shares by such investors may be subject to PRC tax at a current rate of 20% (which, in the case of dividends, may be withheld at source).
Any PRC tax liability may be reduced under applicable tax treaties