Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 88

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 88
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 to May
5, 2025 and bears an annual interest of %. The loan was fully repaid in June 2024. On May 6, 2024, the Company entered into a new loan
agreement with Honghe County Yisa Hengtong Decoration Company to borrow $ as working capital loan in free and due on .
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, is %.

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 |