Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 490

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7
Chunk 490
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F-11 

The Company operates its business through a subsidiary
incorporated in the PRC which is subject to a corporate income tax rate of 25%. A reconciliation of the effective tax rates from 25% statutory
tax rates for the years ended December 31, 2024 and 2023 is as follows:

    Schedule of reconciliation of tax rates 

    For the years ended  December 31, 

    2024  
    2023 
  
    Loss before tax 
    $(288,160) 
    $(289,666)
  
    Tax expense (benefit) calculated at statutory tax rate 
     25%  
     25% 
  
    Computed expected benefits 
     (72,040) 
     (72,417)
  
    Non-deductible expenses 
     40,722  
     – 
  
    Change in valuation allowance 
     29,691  
     72,417 
  
    Tax effect on tax losses expired 
     1,627  
     – 
  
    Income tax expense 
    $–  
    $– 

The full realization of the tax benefit associated
with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry-forward
period.

In assessing the realization of deferred tax assets,
management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate
realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary
differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income,
and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely
than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain.

As of December 31, 2024 and 2023, the
Company had deferred tax assets of $252,874
and $229,999
using the PRC statutory rate of 25%,
respectively. As management of the Company believes that it is more likely than not that the benefit from the loss carried forwards
will not be realized, the Company recorded a full valuation allowance of $(252,874)
and $(229,999)
for the years ended December 31, 2024 and 2023, respectively. There