Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 156

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 156
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’s determination. However, any changes with the current
effective PRC Tax laws and regulations could result in the Company paying more enterprise income tax, which would materially and adversely
affect the operating and financial performance of the Company.

Tax savings for the years ended December 31, 2024,
2023 and 2022 amounted to approximately nil, niland $1,933,000, respectively. The Company’s basic and diluted earnings per share
would have been lower by nil, nil, and $0.50per share for the years ended December 31, 2024, 2023 and 2022, respectively, without the
preferential tax exemption.

The following table reconciles China statutory
rates to the Company’s effective tax rate:

                                                 December 31,                  December 31,              
  China income tax rate                                              25.0                          25.0  
  Tax exemption/preferential rate reduction                             -                             -  
  Change in valuation allowance                                    ( 25.0                        ( 25.4  
  Effective tax rate                                                  0.0                         ( 0.4  

Deferred tax assets - China

The following table summarizes the significant
components of deferred tax assets.

                                   December 31,                       December 31,                   
  Net operating losses             $                   1,306,950      $                   1,122,569  
  Allowance for credit losses                             10,433                             10,589  
  Less: valuation allowance                          ( 1,317,383                        ( 1,133,158  
  Deferred tax assets, net         $                           -      $                           -  

The following table summarizes the changes in
valuation allowance for deferred tax assets.

                         December 31,                     December 31,                 
  Beginning balance      $                 1,133,158      $                   972,237  
  Additions                                  184,225                          160,921  
  Ending balance         $                 1,317,383      $                 1,133,158  

The Company evaluated the recoverable amounts
of deferred tax assets, and provided a valuation allowance to the extent that future taxable profits will be available against which the
net operating loss and temporary difference can be utilized. The Company considers both positive and negative factors when assessing the
future realization of the deferred tax assets and applied weigh to the relative impact of the evidence to the extent it could be objectively
verified.

The Company’s NOL was mainly from the Company’s
V