Company: NCL
Filing Date: 2025-07-01
Form Type: 10-K
Source: 0001575872-25-000433
Chunk: 85

Company: Northann Corp.
Filing Date: 2025-07-01
Form: 10-K
Item: Item 13
Chunk 85
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 the year ended

			December 31, 

			2024

			For the year ended

			December 31, 

			2023

			Loss before income tax expense  

			$

			(4,378,142

			)

			$

			(7,118,212

			)

			Computed tax benefit with statutory tax rate

			29.84

			%

			29.84

			%

			Income tax expense computed at statutory income tax rate

			(1,306,437

			)

			(2,124,074

			)

			Impact of different tax rates in other jurisdictions

			1,115,557 

			1,935,475 

			Tax effect of non-deductible expenses

			192,615

			202,961

			Total income tax expense

			$

			1,733

			$

			14,361

The effective tax rate were (0.04%) and (0.2%) for the years ended December 31, 2024 and 2023, respectively.

Uncertain tax positions

The Company did not have any uncertain tax positions during the years ended December 31, 2024 and 2023.

The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by the respective jurisdictions, where applicable. The statute of limitations for the tax returns varies by jurisdictions.

F-21

The amounts of uncertain tax liabilities listed above are based on the recognition and measurement criteria of ASC Topic 740, and the balance is presented as current liability in the consolidated financial statements as of December 31, 2024. The Company anticipated that the settlements with the taxing authority are remitted within one year.

Our policy is to include interest and penalty charges related to uncertain tax liabilities as necessary in the provision for income taxes. The Company has a liability for accrued interest of $nil as of December 31, 2024 and 2023, respectively.

The statute of limitations for the Internal Revenue Services to assess the income tax returns on a taxpayer expires three years from the due date of the profits tax return or the date on which it was filed, whichever is later.

In accordance with the Hong Kong profits tax regulations, a tax assessment by the IRD may be initiated within six years