Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 148

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 148
---
 31, 2024, 2023 and 2022, respectively.

F-15

Income taxes

The Company’s subsidiaries in China and
Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the years ended
December 31, 2024 and 2023. The Company accounts for income taxes in accordance with ASC 740, “ Income Taxes”. ASC 740 requires
an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred
tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred
taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain.
The Company doesn’t believe that there were any uncertain tax positions as of December 31, 2024 and 2023, respectively.

ASC 740-10-25 prescribes a more-likely-than-not
threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also
provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated
with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were
no material uncertain tax positions as of December 31, 2024 and 2023. The Company will recognize interest and penalties, if any, related
to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest
and penalties will be included on the related tax liability line in the consolidated balance sheet. As of December 31, 2024, the tax years
ended December 31, 2019 through December 31, 2024 for the Company’s PRC subsidiaries remain open for statutory examination by PRC
tax authorities.

Value added tax (“ VAT”)

Sales revenue represents the invoiced value of
goods, net of VAT. The applicable VAT rate was13% or9% (depending on the type of goods involved) for products sold in the PRC. The VAT
may be offset by VAT paid