v3.25.2
Taxes
 12 Months Ended
Dec. 31, 2024
Taxes  
Taxes

Note 20 – Taxes

 

Prepaid taxes

 

Prepaid taxes as of December 31, 2024 and 2023 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Prepaid value-added tax

 

$464,963

 

 

$494,439

 

Others

 

 

3,494

 

 

 

4,734

 

Total

 

$468,457

 

 

$499,173

 

 

Taxes payable

 

Taxes payable as of December 31, 2024 and 2023 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Corporation income tax payable

 

$1,428,586

 

 

$1,033,043

 

Other tax payable

 

 

133,055

 

 

 

153,914

 

Total

 

$1,561,641

 

 

$1,186,957

 

 

Corporation income tax (“CIT”)

 

Tantech BVI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. EPakia Gohomeway Holding and Gohomeway were incorporated in Delaware and California, United States and are subject to a combined U.S. federal and state statutory income tax rate at 28%. EPakia Canada was incorporated in Alberta, Canada and is subject to a combined federal and provincial statutory income tax rate at 23%. USCNHK Holdings, China East and Euroasia are holding companies registered in Hong Kong and have no operating profit for tax liabilities.

 

The Group’s subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which has been effective since January 1, 2008.

 

The following table reconciles PRC statutory rates to the Group’s effective tax rates for the years ended December 31, 2024, 2023 and 2022:

 

 

 

Years ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Statutory PRC income tax rate

 

 

25%

 

 

25%

 

 

25%

Favorable tax rate impact

 

 

341%

 

 

3%

 

 

5%

Permanent difference and others

 

 

53%

 

 

(4)%

 

 

7%

Changes of deferred tax assets valuation allowances

 

 

79%

 

 

2%

 

 

7%

Total

 

 

498%

 

 

26%

 

 

44%

Income tax expense consisted of the following:

 

 

 

Years ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Current

 

$3,111,047

 

 

$2,364,489

 

 

$3,141,969

 

Deferred

 

 

 -

 

 

 

-

 

 

 

-

 

Total

 

$3,111,047

 

 

$2,364,489

 

 

$3,141,969

 

 

Significant components of deferred tax assets are as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Allowance for credit losses and other markdown and impairments

 

$1,145,662

 

 

$1,250,752

 

Valuation allowance

 

 

(1,145,662)

 

 

(1,250,752)

Total

 

$

 -

 

 

$

-

 

 

At December 31, 2024 and 2023, the Group has provided full valuation allowance for deferred tax assets that the Group estimated it could not realize due to expected future operating loss in certain entities. As of December 31, 2024 and 2023, the valuation allowance was $1,145,662 and $1,250,752, respectively. The Group’s management reviews this valuation allowance periodically and makes adjustments as necessary.