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Income taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income taxes  
Schedule of Components of income tax expense (benefit)

Year ended December 31, 

    

2022

    

2021

    

2020

Income tax expenses

$

(195)

$

(188)

$

(741)

Deferred income tax benefit

251

314

1,050

$

56

$

126

$

309

Schedule of company's effective tax rate

The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the years ended December 31, 2022, 2021 and 2020:

Year ended December 31, 

 

    

2022

    

2021

    

2020

 

U.S. Statutory rates

21.0

%

21.0

%

21.0

%

Foreign income not recognized in USA

(21.0)

(21.0)

(21.0)

China income taxes (including Hong Kong SAR)

 

4.1

 

13.6

 

16.0

Australia income taxes

(0.6)

1.1

Impact of tax rate in other jurisdictions

 

(1.3)

 

(6.4)

 

(5.0)

Impact of tax reduction of Hong Kong profits tax

0.1

Tax effect of non-deductible expenses

 

(0.4)

 

(7.9)

 

(10.4)

Valuation allowance

 

4.2

 

0.4

 

(0.1)

Under provision in respect of prior years

 

(1.6)

 

(2.2)

 

(0.7)

Other (a)

 

0.1

 

2.9

 

0.6

Effective income taxes

 

4.6

%

1.5

%

0.4

%

Notes:

(a)There were no other material items affecting the effective income tax for the years ended December 31, 2022, 2021 and 2020 except for (i) losses incurred by TROOPS of approximately $970, $1,156 and $1,870, respectively, where there is no tax in the Cayman Islands; and (ii) under-provision of Hong Kong profits tax as a result of certain non-deductible expenses in prior year.
Schedule of components of deferred income tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred income tax assets and liabilities are as follows:

    

December 31, 2022

    

December 31, 2021

Deferred income tax assets:

 

  

 

  

Net operating loss carry-forward

$

531

$

647

Less: Valuation allowance

 

(531)

 

(647)

$

$

Deferred tax liabilities

 

Intangible assets

$

8

$

12

Property, plant and equipment

5,273

5,521

Interest income

12

12

$

5,293

$

5,545