Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 90

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 90
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2024, 2023 and 2022, respectively.

Deferred income taxes reflect the net effects
of temporary difference between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for
income tax purposes. The Company periodically evaluates the likelihood of the realization of deferred tax assets and reduces the carrying
amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized.

|                           | Deferred tax asset |   |       As of 
 December 31 
        2024 |   |     |   |       As of 
 December 31 
        2023 |   |
|:--------------------------|:-------------------|:--|------------:|:--|:----|:--|------------:|:--|
| Allowance for credit loss |                    | $ |      28,051 |   |     | $ |         922 |   |
| Tax loss carried forwards |                    |   |     414,904 |   |     |   |     152,840 |   |
| Deferred tax assets       |                    |   |     442,955 |   |     |   |     153,762 |   |
| Valuation allowance       |                    |   |    (442,955 | ) |     |   |    (153,762 | ) |
| Deferred tax assets, net  |                    | $ |           - |   |     | $ |           - |   |

| (b) | VAT |

The Company is subject to VAT for selling products
in China. The applicable VAT rate is % for products sold in the PRC. The amount of VAT liability is determined by applying the applicable
tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input
VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued.

| (c) | Taxes payable |

The Company’s taxes payable consist of the following:

|                                      |     | 2024 |        As of 
 December 31, |     | 2023 |        As of 
 December 31, |
|:-------------------------------------|:----|:-----|-------------:|:----|:-----|-------------:|
| VAT tax payable                      |     | $    |       71,796 |     | $    |       72,295 |
| Corporate income tax payable         |     |