v3.26.1
Note 14 - Income Taxes
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 14 – INCOME TAXES

 

Current tax assets and liabilities

 

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based on the tax rates and tax laws that are enacted or substantively enacted at the end of the reporting period.

 

Deferred taxes

 

Deferred tax is recognized using the liability method on temporary differences as of the end of the reporting period between the carrying amounts of assets and liabilities and their tax bases.

 

Deferred tax liabilities are recognized for all taxable temporary differences. The only exception is if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination which, at the time of the transaction, affects neither accounting profit or loss nor taxable profit or loss. Deferred tax liabilities are recognized for all taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary differences, and it is probable that the temporary difference will not reverse in the foreseeable future.

 

Deferred tax assets are recognized for deductible temporary differences and to the extent that it is probable that future taxable income will allow the deferred tax asset to be realized.

 

Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets may only be recognized up to the amount of the deferred tax liabilities as it is not sufficiently probable that future taxable profit will be available against which they can be utilized.

 

If transactions and other events are recognized directly in equity, any related taxes on income are also recognized directly in equity. As transaction costs are recognized in the capital reserve, corresponding (deferred) tax effects are recognized partly due to the loss situation of Sono Group and the fact that deferred taxes for losses carried forward were partly recognized at the level of Sono N.V.

 

Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset current tax assets and current tax liabilities and these relate to income taxes levied by the same tax jurisdiction.

 

Rate Reconciliation

 

   

2025

    

2024

  
                 

Pre-tax book Income (Loss)

     4,015       (63,973 )

Expected tax/(benefit) at 32.98% international statutory rates

     (1,324 )     (21,098 )

Current Year Change in Valuation Allowance

     1,324       21,098  
                 

Income tax expense

     –       –  

 

Deferred Tax Assets/(Liab.) Detail

 

   

2025

    

2024

  
                 

NOL DTA

     108,020       106,429  

(Gain) From Change in FV of Convertible Debt

     (3,905 )     (242 )

Unrecognized tax losses

     115       1,274  
                 

Net Deferred Tax Asset

     105,050       107,461  

Less valuation allowance

     (105,050 )     (107,461 )

Deferred Tax Assets

     –       –  

 

The table above presents the gross deferred taxes only for reasons of understanding and completeness, as no deferred taxes have been recognized due to a (deferred tax asset/liabilities) net position of zero. As the net deferred tax asset was not booked in a first step, no valuation allowance is booked. Given the loss history of the Company, deferred tax assets are not recognized on the balance sheet. The amount of deferred tax assets/liabilities as of December 31, 2025 and 2024 are zero.

 

There are no deferred taxes with regard to Outside Basis Differences as those are permanent differences.