Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 157

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 157
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 the recognition of income tax assets and liabilities, classification of current and deferred
income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The
Company’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration
and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the
taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment
of taxes is more than US$ 13,700 100,000

The
Company did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line
of its consolidated statements of income for the years ended December 31, 2022, 2023 and 2024, respectively. The Company does not expect
that its assessment regarding unrecognized tax positions will materially change over the next 12 months.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
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(y) Value added tax (“ VAT”)

The
Company is subject to VAT and related surcharges on revenue generated from sales of manufactured electronic products, commissioned processing
service and rental income. The Company records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Company
to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated
balance sheets. The Company incurs VAT related surcharges based on net VAT balance paid.

The
VAT rate is 13 6 5

(z) Non-controlling interest

For
the Company’s majority-owned subsidiaries, a non-controlling interest is recognized to reflect the portion of their equity which
is not attributable, directly or indirectly, to the Company. Consolidated net loss on the consolidated statements of operation and comprehensive
loss includes the net loss attributable to non-controlling interests. The cumulative results of operations attributable to non-controlling
interests, are recorded as non-controlling interests in the Company’s consolidated balance sheets.

(aa) Net loss per share

In
accordance with ASC 260, Earnings per Share, basic net loss per share is