Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 56

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 56
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. Account balances are charged off against the allowance after all means of collection have been exhausted
and the potential for recovery is considered remote. We continue to evaluate the reasonableness of the valuation allowance policy and
update it if necessary.

Income
taxes

We
account for income taxes in accordance with U. S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal
year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.

Deferred
tax is calculated using the balance sheet liability method in respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis. In principle, deferred tax
liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable
that taxable income will be utilized with prior net operating loss carried forwards using tax rates that are expected to apply to the
period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the income statement, except when
it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be utilized. Current income
taxes are provided for in accordance with the laws of the relevant tax authorities. Our assumptions on valuation allowance includes our
subsidiaries historical operating result and likelihood of whether we expect we can realize such deferred tax assets in the near future.

An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is more-likely-than-not of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded.

  37  

Item
6. Directors, Senior Management and Employees