Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 70

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 70
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 Company to borrow $109,600as working capital loan in free and due onMay 5, 2025.
The loan was renewed to May 5, 2026.

F-22

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 - TAXES

  (a)      Corporate income taxes  
 ───────────────────────────────────

The Company is subject to income taxes on an entity
basis on income arising in or derived from the location in which each entity is domiciled.

ReTo was incorporated in the British Virgin Islands and is exempt from
paying income tax New REIT and Sunoro Holdings are registered in Hong Kong as holding companies.

The Company’s PRC subsidiaries are subject
to PRC income tax, which is computed according to the relevant laws and regulations in the PRC. Under the EIT Law, the corporate income
tax rate applicable to all companies, including both domestic and foreign-invested companies, is25%.

The following table reconciles income tax expense
by statutory rate to the Company’s actual income tax expense:

                                                                          For the Year Ended December 31,                                                                         
                                                                          2024                                                  2023                       2022                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Income tax benefit computed based on PRC statutory income tax rate      $                                    ( 2,078,144      $         ( 1,631,581      $         ( 1,621,594  
  Effect of favorable income tax rate in certain entity in PRC                                                 -                          -                          -            
  Non-PRC entities not subject to PRC tax (1)                                                                  1,768,565                  1,596,505                  1,611,361    
  Non-deductible expenses - permanent difference (2)                                                           1,393                      243                        -            
  Change in valuation allowance                                                                                308,186                    34,833                     10,233       
  Effective tax (benefit) expense                                         $                                    -                $         -                $         -            

  (1)      Represents the tax losses incurred from operations outside of China.                      
  (2)      Represents expenses incurred by the Company that were not deductible for PRC income tax.  

The breakdown of the Company’s loss before income tax provision
is as follows:

                                                            For the