Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 71

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 71
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 Year Ended December 31,                                                                         
                                                            2024                                                  2023                       2022                   
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Loss before income tax expense from China                 $                                    ( 1,238,315      $           ( 140,301      $            ( 40,933  
  Loss before income tax expense from outside of China                                           ( 7,074,261                ( 6,386,021                ( 6,430,022  
  Total loss before income tax provision                    $                                    ( 8,312,576      $         ( 6,526,322      $         ( 6,470,955  

F-23

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 - TAXES (continued)

  (a)      Corporate income taxes (continued)  
 ───────────────────────────────────────────────

Loss before income tax expense from outside of China represents the
losses incurred by ReTo holdings companies incorporated outside of China.

The income tax provision (benefit) was nilfor the years ended December
31, 2024, 2023 and 2022, respectively.

Deferred income taxes reflect the net effects
of temporary difference between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for
income tax purposes. The Company periodically evaluates the likelihood of the realization of deferred tax assets and reduces the carrying
amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Due to continuous
losses incurred, the Company provided full allowance on the deferred tax assets as of December 31, 2024 and 2023.

  Deferred tax asset             As of                           As of                       
                                 December 31                     December 31                 
                                 2024                            2023                        
 ─────────────────────────────────────────────────────────────────────────────────────────────
  Allowance for credit loss      $                   28,051      $                      922  
  Tax loss carried forwards                         414,904                         152,840  
  Deferred tax assets                               442,955                         153,762  
  Valuation allowance                             ( 442,955                       ( 153,762  
  Deferred tax assets, net       $                        -      $                        -  

  (b)      VAT