INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 9. INCOME TAXES

United States

EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation at tax rate of 21%. No provisions for income taxes have been made as the Company has no taxable income for the period. As of December 31, 2022, the Company had net operating loss carry forwards of $1,314,134 that may be available to reduce future years’ taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements as their realization is determined not likely to occur and, accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100% valuation allowance has offset deferred tax asset resulting from the net operating losses.

British Virgin Islands

EOS International Inc. is incorporated in British Virgin Islands and are not required to pay income tax.

Taiwan

The subsidiary of EOS Inc. and Emperor Star is incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, statutory income tax rate increased from 17% to 20% and undistributed earning tax decreased from 10% to 5%, effective from January 1, 2018.

People’s Republic of China (“PRC”)

Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiary of the Company is subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. No provision for income taxes have been made as Maosong had no taxable income as of and for the year ended December 31, 2022.

Provision for income tax consists of the following:

	Years Ended December 31,
	2022			2021
Current income tax (benefit)
U.S.	$	-		$	-
Taiwan		(10,093	)		16,592
PRC		-			-
Sub total		(10,093	)		16,592
Deferred income tax
Deferred tax assets for NOL carry-forwards		284,605			58,003
Valuation allowance		(284,605	)		(58,003	)
Other adjustments		(10,093	)		-
Net changes in deferred income tax (benefit)		-			-
Total income tax provision	$	(10,093	)	$	16,592

The Company has an income tax benefit of $10,093 which was an adjustment of over estimated tax expense from prior year.

The net loss before income taxes and its provision for income taxes as follows:

`	Years Ended December 31,
	2022			2021
Net loss before income tax		(1,922,252	)		(1,084,973	)
Statutory tax rate		15	%		20	%
Income tax provision		(284,605	)		(216,995	)
Valuation allowance		284,605			58,003
Non-taxable income		-			180,283
Other adjustments		(10,093	)		(4,699	)
Income tax expenses, net		(10,093	)		16,592

Significant components of the Company’s deferred taxes assets as follows:

	Years Ended December 31,
Deferred tax assets:	2022			2021
Net operating loss carry-forwards		284,605			235,488
Less: Valuation allowance		(284,605	)		(235,488	)
Deferred tax assets, net		-			-