Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 182

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 182
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 of these instruments.

(k) Income Taxes

Income tax expense comprises current and deferred
taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive
income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable
on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable
with respect to previous periods.

The Company accounts for income taxes using the
asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the
financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax
rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change
in tax rates is recognized in the statements of operations in the period of change.

     F-9 

The Company accounts for uncertain tax positions
by reporting liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return.
Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position
will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest
and penalties if any, related to unrecognized tax benefits in income tax expenses.

(l) Comprehensive Income or Loss

Comprehensive income or loss includes net income
and foreign currency translation adjustments. Comprehensive income or loss is reported in the statements of comprehensive income or loss.

(m) Concentration of Credit Risk

Financial instruments that potentially expose
the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and other receivables. As of
December 31, 2024 and 2023, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions
with high-credit ratings and quality. During the years ended December 31, 2024 and 2023, revenue amounting to $168,296 and $1,969,094
were generated from third parties, respectively; and $334,254 and $ nil were generated from a related party (see Note 7), respectively.

Details of customer who accounted for 10% or more
of the Company’s total revenue for the years ended December 31, 2024 and 2023 are as follows:

    Schedule