Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 89

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 89
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| Non-deductible expenses - permanent difference (2)                 |     |                                 |      1,393 |   |     |   |        243 |   |     |   |          - |   |
| Change in valuation allowance                                      |     |                                 |    308,186 |   |     |   |     34,833 |   |     |   |     10,233 |   |
| Effective tax (benefit) expense                                    |     | $                               |          - |   |     | $ |          - |   |     | $ |          - |   |

| (1) | Represents the tax losses incurred from operations outside of China.                     |
| (2) | Represents expenses incurred by the Company that were not deductible for PRC income tax. |

The breakdown of the Company’s loss before income tax provision
is as follows:

|                                                      |     | For the Year Ended December 31, 
 2024                            |            |   |     | 2023 |            |   |     | 2022 |            |   |
|:-----------------------------------------------------|:----|:--------------------------------|:-----------|:--|:----|:-----|:-----------|:--|:----|:-----|:-----------|:--|
| Loss before income tax expense from China            |     | $                               | (1,238,315 | ) |     | $    | (140,301   | ) |     | $    | (40,933    | ) |
| Loss before income tax expense from outside of China |     |                                 | (7,074,261 | ) |     |      | (6,386,021 | ) |     |      | (6,430,022 | ) |
| Total loss before income tax provision               |     | $                               | (8,312,576 | ) |     | $    | (6,526,322 | ) |     | $    | (6,470,955 | ) |

F-23 RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 – TAXES (continued)

| (a) | Corporate income taxes (continued) |

Loss before income tax expense from outside of China represents the
losses incurred by ReTo holdings companies incorporated outside of China.

The income tax provision (benefit) was nil for the years ended December
31,