NOTE 14- INCOME TAXES
The Company recorded no income taxes for the three and nine months
ended September 30, 2024 and 2023. Net income and net loss were not offset among the operating subsidiaries. Net income of $584,785 and
$563,375 were exempt from income tax for the three months ended September 2024 and 2023, respectively. Net income of $1,131,025 and
$1,647,017 were exempt from income tax for the nine months ended September 30, 2024 and 2023, respectively.
The following table reconciles the U.S. statutory rates to the Company’s
effective tax rate for the three and nine months ended September 30, 2024 and 2023:
Schedule of effective tax rates | |
| | | |
| | |
| |
For the three months ended | |
| |
September 30, 2024 | | |
September 30, 2023 | |
| |
(Unaudited) | | |
(Unaudited) | |
US federal statutory rates | |
| -21 | % | |
| -21 | % |
Tax rate difference between PRC and U.S. | |
| -4 | % | |
| -4 | % |
Effect of income tax exemption on certain income | |
| -141 | % | |
| -170 | % |
Change in valuation allowance | |
| 166 | % | |
| 195 | % |
Effective tax rate | |
$ | - | | |
$ | - | |
| |
| | | |
| | |
| |
For the nine months ended | |
| |
September 30, 2024 | | |
September 30, 2023 | |
| |
(Unaudited) | | |
(Unaudited) | |
US federal statutory rates | |
| (21 | %) | |
| (21 | %) |
Tax rate difference between PRC and U.S. | |
| (4 | %) | |
| (4 | %) |
Effect of income tax exemption on certain income | |
| (29 | %) | |
| (1206 | %) |
Change in valuation allowance | |
| 54 | % | |
| 1231 | % |
Effective tax rate | |
$ | - | | |
$ | - | |
| |
| | | |
| | |
The provision for income tax expense (benefit) for the nine months
ended September 30, 2024 and 2023 consisted of the following:
Schedule of income tax expense (benefit) | |
| | | |
| | |
| |
For the nine months ended | |
| |
September 30, 2024 | | |
September 30, 2023 | |
| |
(Unaudited) | | |
(Unaudited) | |
Income tax expense - current | |
$ | - | | |
$ | - | |
Income tax benefit -deferred | |
| (374,704 | ) | |
| (371,072 | ) |
Increase in valuation allowance | |
| 374,704 | | |
| 371,072 | |
Total income tax expense | |
$ | - | | |
$ | - | |
Schedule of net deferred tax assets | |
| | | |
| | |
| |
September, 30, 2024 (Unaudited) | | |
December 31, 2023 | |
Deferred tax asset | |
| | | |
| | |
Net operating loss | |
$ | (2,905,848 | ) | |
$ | (2,531,144 | ) |
Less: valuation allowance | |
| 2,905,848 | | |
| 2,531,144 | |
Net deferred tax asset | |
$ | - | | |
$ | - | |
|