Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 84

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 13
Chunk 84
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 profits tax return. The election is irrevocable. The Company elected Benchwick to be subject to the two-tier profits tax rates.

The provision for current income and deferred taxes of Benchwick has been calculated by applying the new tax rate of 8.25%.

PRC

In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. All the PRC subsidiaries that are not entitled to any tax holiday were subject to income tax at a rate of 25% for the year ended December 31, 2024 and 2023. According to PRC tax regulations, the PRC net operating loss can generally carry forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred. Carry back of losses is not permitted. If not utilized, the PRC net operating loss will expire in 2026.

The income tax expense was $1,733 and $14,361 for the years ended December 31, 2024 and 2023, respectively, related primarily to the Company’s subsidiaries located outside of the U.S. The income before provision for income taxes for the years ended December 31, 2024 and 2023 was as follows:

The income tax provision consists of the following components:

			For the year ended

			December 31, 

			2024

			For the year ended

			December 31, 

			2023

			Current:

			Federal

			$

			-

			$

			-

			State

			(108

			)

			12,851

			Foreign

			1,841 

			1,509

			Total current

			$ 

			1,733 

			$

			14,361

			Deferred:

			Federal

			$

			-

			$

			-

			State

			-

			-

			Foreign

			- 

			-

			Total deferred

			$ 

			- 

			$

			-

			Total income tax expense

			$

			1,733

			$

			14,361

F-20

A reconciliation between the Company’s actual provision for income taxes and the provision at the United States statutory rate is as follow:

			For