Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 113

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 113
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 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) 
    $(322,890)
  
    Deferred taxes – PRC entities 
     (1,632,978) 
     (3,215,727)
  
    Total Income tax (expenses) benefits 
    $(1,648,182) 
    $(3,538,617)

Significant components of the
Company’s deferred tax assets and liabilities at December 31, 2024 and December 31, 2023 are as follows:

Income Taxes - Schedule of Deferred
Tax Assets and Liabilities

    December 31, 
    December 31,

    2024 
    2023
  
    Deferred tax assets: 

    Exploration costs 
    $1,731,920  
    $1,757,816 
  
    Allowance 
     729,731  
     — 
  
    Impairment of property plant and equipment 
     1,686,095  
     — 
  
    PRC tax losses 
     9,125,871  
     11,941,045 
  
    US federal net operating loss 
     1,661,464  
     1,694,