Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 156

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 156
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subsidies, building repair income, foreign currency exchange gain or loss, and others. Government grants represent cash subsidies received
from the PRC government. Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions
attach to it and the grant will be received. Government grants for the purpose of giving immediate financial support to the Company with
no future related costs or obligation is recognized in the Company’s consolidated statements of operations and comprehensive loss
when the grant becomes receivable.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

(w) Employee benefits

The
Company’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which
certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated
in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation
of qualified employees. The Company has no further commitments beyond its monthly contribution. Employee social benefits included as
expenses in the accompanying consolidated statements of comprehensive loss amounted to US$ 81,888 153,741 149,426

(x) Income taxes

The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective
tax bases.

Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets
to the amount expected to be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

The
provisions of ASC 740-10-25, “ Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for
consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This
interpretation also provides guidance on