Company: NCL
Filing Date: 2025-11-18
Form Type: 424B3
Source: 0001575872-25-000699
Chunk: 23

Company: Northann Corp.
Filing Date: 2025-11-18
Form: 424B3
Chunk 23
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 to issue 400,000,000
shares of common stock with par value of US$0.001 per share. Each share of common stock entitles the holder to one vote. For
the sake of comparability, the share structure as of the date of this report has been carried back in the Company’s statement of
stockholders’ equity as if they had been issued and outstanding from the beginning of the first period presented.

| 11. | INCOME TAXES |

United States of America

The Company is subject to taxation in the United
States (USA) at the tax rate of 21%.

| F-14 |

Hong Kong

Two-tier Profits Tax Rates

The two-tier profits tax rates system was introduced
under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (the “Ordinance”) of Hong Kong became effective for the assessment
year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for the first HKD 2 million (approximately $257,868)
of assessable profits of a corporation will be subject to the lowered tax rate, 8.25% while the remaining assessable profits will be subject
to the legacy tax rate, 16.5%. The Ordinance only allows one entity within a group of “connected entities” is eligible for
the two-tier tax rate benefit. An entity is a connected entity of another entity if (1) one of them has control over the other; (2) both
of them are under the control (more than 50% of the issued share capital) of the same entity; (3) in the case of the first entity
being a natural person carrying on a sole proprietorship business-the other entity is the same person carrying on another sole proprietorship
business. Since Benchwick is wholly owned and under the control of Northann, it is a connected entity. Under the Ordinance, it is an entity’s
election to nominate the entity that will be subject to the two-tier profits tax rates on its profits tax return. The election is irrevocable.
The Company elected Benchwick to be subject to the two-tier profits tax rates.

The provision for current income and deferred
taxes of Benchwick has been calculated by applying the new tax rate of 8.25%.

PRC

In accordance with the relevant tax laws and regulations
of the PRC, a company registered in the PRC is subject to income taxes within the