Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 147

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 147
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 the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the
amount expected to be realized.

An uncertain tax position
is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination.
The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions
not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment
of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes
have been incurred during the years ended December 31, 2024 and 2023. All of the tax returns of our subsidiary in China remain subject
to examination by the tax authorities for five years from the date of filing.

Recently issued accounting pronouncements

A list of recent relevant
accounting pronouncements is included in Note 2 “ Summary of Principal Accounting Policies” of our Consolidated Financial Statements.

Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES