Income Tax

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Income Tax

24. Income Tax

A reconciliation of current income taxes at statutory rates with the reported taxes is as follows:

	2023			2022
Net income (loss) before income taxes	$	758,132		$	(6,121,754	)
Effective tax rate		27	%		27	%
Expected income tax recovery	$	204,696		$	(1,652,874	)
Change in statutory, foreign tax, foreign exchange rates, and other		(204,794	)		238,194
Permanent differences		1,335,140			649,306
Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses		249,576			-
Change in unrecognized deductible temporary differences		275,708			765,374
Total	$	1,860,326		$	-

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in U.S. dollars)

24. Income Tax (continued)

The tax effected items that give rise to significant portions of the deferred tax assets and deferred tax liabilities as at year-end are presented below:

	2023			2022
Deferred tax liabilities
Exploration and evaluation assets	$	(9,990,074	)	$	(1,426,133	)
Property and equipment		(60,011	)		-
Convertible debt		(327,305	)		-
Deferred tax assets
Assets held for sale	$	311,357		$	-
Asset retirement obligation		1,249,406
Non-capital losses		6,685,079			1,426,133
Net deferred tax assets (liabilities)	$	(2,131,548	)	$	-

The Company recognizes tax benefits on losses or other deductible amounts where the probable criteria for the recognition of deferred tax assets has been met. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:

	2023		Expiry		2022		Expiry
Share issue costs		2,782,651		2027		2,119,858		2027
Property and equipment		16,101		N/A		153,117		N/A
Asset retirement obligation		-		N/A		5,718,041		N/A
Non-capital losses		24,377,533		See below		28,385,944		See below
Canada		10,360,380		2042 to 2043		3,995,237		2042
USA		4,228,651		indefinite		16,533,694		indefinite
USA		9,785,059		2028 to 2037
Turkey		-		N/A		723,950		2024 to 2027
Bulgaria		3,443		2028		2,401		2027