Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 69

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 at a rate
of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000. Biowin is
subject to corporate income tax at a reduced rate of 15% starting from December 2019, when it was approved by local government as a High
and New Technology Enterprises (“HNTEs”), to December 2022. In December 2022, the Company successfully renewed its HNTE certification
with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2025. The
subsidiaries of Wintus in the PRC are governed by the Income Tax Laws of the PRC and are currently subject to tax at a statutory rate
of 25% on taxable income, except certain subsidiaries that are recognized as small low-profit enterprises. According to the relevant
PRC tax policies, once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the taxable
income not more than RMB3 million is subject to a reduced effective rate of 5% during the period from January 1, 2023 to December 31,
2027.

On December 22, 2017, The Act was enacted.
The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings
are subject to U.S. taxation. The change in rate has caused the Company to re-measure its income tax liability and record an estimated
income tax expense of US$744,766 for the year ended June 30, 2018. In accordance with SAB 118, additional work is necessary to do a more
detailed analysis of The Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded
to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year
period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven,
and 25 percent in year eight).

i) The components of the income tax
provision (benefit) were as follows:

SCHEDULE OF INCOME TAX BENEFIT 

    2024  
    2023  
    2024  
    2023