Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 258

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 19
Chunk 258
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 deferred
tax assets that the Group does not expect to realize at December 31, 2024 and 2023, respectively.

Value added tax

Enterprises who sell goods
in the PRC are subject to a value added tax in accordance with PRC laws. VAT standard rates are3% to13% of the gross sales price. A
credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Group’s
finished products can be used to offset the VAT due on sales of the finished products and services. Powerbridge Zhuhai obtained a VAT
preferential status for its technology development business, accordingly, the certain Group’s technology development business is
exempted from VAT.

Tax payable

Taxes payable consists of
the following:

                                 As of December 31,                                      
                                 2024                                 2023               
 ─────────────────────────────────────────────────────────────────────────────────────────
  Income taxes payable           $                         5,591      $           5,889  
  VAT and other tax payable                              239,179                174,553  
  Taxes payable                  $                       244,770      $         180,442  

Uncertain tax positions

The Group evaluates each uncertain
tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized
benefits associated with the tax positions. As of December 31, 2024 and 2023, the Group did not have any significant unrecognized uncertain
tax positions. The Group did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended
December 31, 2024, 2023 and 2022. The Group also does not anticipate any significant increases or decreases in unrecognized tax benefits
in the next 12 months from December 31, 2024.

F-36

X3 HOLDINGS CO., LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 16 - Equity

Ordinary Shares

On December 5, 2022, the Company
held its 2022 special general meeting of shareholders. At the Meeting, the Company’s shareholders approved an amendment to the Company’s
amended and restated Memorandum and Articles of Association (“ A& R M& A”) to increase the authorized share capital.
As a result, the Company’s authorized share capital is $16,666,700divided into10,000,000