Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 509

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 509
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) shall be subject to WHT at 5% effective tax rate.

As of December 31, 2024
and 2023, the accumulated distributable earnings under the Generally Accepted Accounting Principles (GAAP”) of PRC that are subject
to WHT are $40,524,183
and $87,160,228,
respectively. Since the Company intends to reinvest its earnings to further expand its businesses in mainland China, its foreign invested
enterprises do not intend to declare dividends to their immediate foreign holding companies in the foreseeable future. Accordingly, as
of December 31, 2024 and December 31, 2023, the Company has not recorded any WHT on the cumulative amount of distributable retained earnings
of its foreign invested enterprises that are subject to WHT in China. As of December 31, 2024 and December 31, 2023, the unrecognized
WHT are $1,078,743 and $3,396,379, respectively.

The Company’s income tax
returns are subject to the various tax authorities’ examination. The federal, state and local authorities of the United States may
examine the Company’s income tax returns filed in the United States for three years from the date of filing. The Company’s
US income tax returns since 2017 are currently subject to examination.

Inland Revenue Department of Hong
Kong (“IRD”) may examine the Company’s income tax returns filed in Hong Kong for seven years from date of filing. For
the years 2012 through 2018, HKJI did not report any taxable income. It did not file any income tax returns during these years except
for 2014 and 2018. For companies which do not have taxable income, IRD typically issues notification to companies requiring them to file
income tax returns once in every four years. The tax returns for 2014 and 2018 are currently subject to examination.

    F-22 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

The components of the provision for income tax benefit (expense)
from continuing operations are:

Income Taxes - Schedule of Components of Income Tax Expense Benefit

    Years Ended December 31,

    2024 
    2023
  
    Current taxes – PRC 
    $(15,204)