Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 220

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 220
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 losses may be carried forward to be utilized against future taxable profit for ten years for High-tech enterprises
and small and medium-sized enterprises of science and technology and for five years for other companies. Tax losses of the operating subsidiaries
of the Company may be carried forward for five years.

On February 22, 2008, the Ministry
of Finance (“MOF”) and the State Administration of Taxation (“SAT”) jointly issued CaiShui [2008] Circular 1 (“Circular
1”). According to Article 4 of Circular 1, distributions of accumulated profits earned by a FIE prior to January 1, 2008 to foreign
investor(s) in 2008 will be exempted from withholding tax (“WHT”) while distribution of the profit earned by an FIE after
January 1, 2008 to its foreign investor(s) 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