Generally speaking, the following factors are not conducive to the judgment of the applicant's "beneficial owner" status:
(1) The applicant is obliged to pay more than 5% of the income to the residents of the third country (region) within 12 months after receiving the income. "Obligation" includes the agreed obligation and the payment that has been made without the agreed obligation.
(2) The business activities of the applicant do not constitute substantive business activities. Substantive business activities include substantive manufacturing, distribution, management and other activities. Whether the business activities the applicant is engaged in are substantive or not should be judged according to the functions it actually performs and the risks it bears.
(3) The other contracting country (region) does not tax or exempt the relevant income, or taxes it, but the actual tax rate is extremely low.
(4) In addition to the loan contract under which interest is generated and paid, there are other loan or deposit contracts that are similar in amount, interest rate and signing time between the creditor and the third party.
(5) In addition to the contract for the transfer of the right to use copyright, patents, technologies, etc. under which royalties are generated and paid, there is a contract for the transfer of the right to use or ownership of copyright, patents, technologies, etc. between the applicant and a third party.