Company: NTCL
Filing Date: 2025-02-18
Form Type: 20-F
Source: 0001410578-25-000153
Chunk: 9

Company: NetClass Technology Inc
Filing Date: 2025-02-18
Form: 20-F
Item: Item 4
Chunk 9
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 preferential income tax rate 2.5% (only 12.5% of such taxable income shall be subject to enterprises income tax at a tax rate of 20%).

According to announcement of the Ministry of Finance and the State Taxation Administration 2022 No.13, which became effective on January 1, 2022 and until to December 31, 2024, small, low profit enterprises whose annual taxable income exceed RMB 1 million ($141,778) but no more than RMB 3 million ($425,333) is subject to the preferential income tax rate of 5% (only 25% of such taxable income shall be subject to enterprises income tax at a tax rate of 20%).

According to announcement of the Ministry of Finance and the State Taxation Administration 2023 No.12, which became effective on August 2, 2023 and until to December 31, 2027, small, low profit enterprises is subject to the preferential income tax rate of 5% (only 25% of such taxable income shall be subject to enterprises income tax at a tax rate of 20%).

United States Federal Income

WE URGE POTENTIAL PURCHASERS OF OUR CLASS A ORDINARY SHARES TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U. S. FEDERAL, STATE, LOCAL AND NON-U. S. TAX CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF OUR CLASS A ORDINARY SHARES.

Table of Contents

The following does not address the tax consequences to any particular investor or to persons in special tax situations such as:

  banks;  

  financial institutions;  

  insurance companies;  

  regulated investment companies;  

  advertising investment trusts;  

  broker-dealers;  

  persons that elect to mark their securities to market;  

  U. S. expatriates or former long-term residents of the U. S.;  

  governments or agencies or instrumentalities thereof;  

  tax-exempt entities;  

  persons liable for alternative minimum tax;  

  persons holding our Class A ordinary shares as part of a straddle, hedging, conversion or integrated transaction;  

  persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our ordinary share);  

  persons who acquired our Class A ordinary shares pursuant to the exercise of any employee share option or otherwise as compensation;  

  persons holding our Class A ordinary