Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 875

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 875
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% of earnings (except for certain small businesses), limitation of the deduction for net operating losses to 80%
of current year taxable income and generally eliminating net operating loss carrybacks, allowing net operating losses to carryforward
without expiration, one-time taxation of offshore earnings at reduced rates regardless of whether they are repatriated, elimination of
U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions
for depreciation expense over time, and modifying or repealing many business deductions and credits (including changes to the orphan drug
tax credit and changes to the deductibility of research and experimental expenditures that will be effective in the future). Notwithstanding
the reduction in the corporate income tax rate, the overall impact of the new federal tax law is uncertain, including to what extent various
states will conform to the newly enacted federal tax law.

Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities
are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using
the currently enacted tax rates and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on
available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes
as interest expense or penalties expense. As of December 31, 2022 and 2021, there have been no interest or penalties incurred on income
taxes.

F-32

INNOVATIVE PAYMENT
SOLUTIONS, INC.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

17INCOME TAXES (continued)

The
provision for income taxes consists of the following:

    Year ended December 31, 2024  
    Year ended December 31,  2023 
  
    Current 

    Federal 
    $          -  
    $        - 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 
  
    Deferred 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 

    $-  
    $- 

A
reconciliation of the U.S. Federal