TAXES

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

TAXES

NOTE 12 – TAXES

The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows:

United States of America

VIVC is registered in the State of Delaware and is subject to US federal corporate income tax rate of 21%. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. However, the Company did not recognize any accrued interest and penalties related to unrecognized tax benefits during the years ended June 30, 2025 and 2024.

Taiwan

Vivic Taiwan operating in Taiwan is subject to the Taiwan Profits Tax at the income tax rate of 20% on the assessable income arising in Taiwan during its tax year. The operation in Taiwan incurred an operating loss and the provision for income tax (benefit) for the years ended June 30, 2025 and 2024 was $(74,232) and $154,199.

Hong Kong

The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the tax rates ranging from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year. The operation in Hong Kong incurred an operating loss and there is no provision for income tax for the years ended June 30, 2025 and 2024.

The reconciliation of income tax rate to the US effective income tax rate based on income before income taxes for the years ended June 30, 2025 and 2024 are as follows:

	Years ended June 30,
	2025			2024
Income (Loss) before income taxes	$	(3,520,983	)	$	3,004,713
Statutory income tax rate		(739,406	)		630,990
Tax rate difference		5,738			(92,355	)
Prior year tax adjustment		(74,976	)		-
Valuation allowance		734,412			(384,436	)
Income tax expense	$	(74,232	)	$	154,199

The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of June 30, 2025 and 2024:

	June 30, 2025			June 30, 2024
Deferred tax assets on
Net operating loss carryforwards:
- United States	$	645,776		$	26,009
- Taiwan		113,709			-
- Hong Kong		629			437
Total		760,115			26,446
Less: valuation allowance		(760,115	)		(26,446	)
Deferred tax assets, net	$	-		$	-

As of June 30, 2025, the Company’s continuing operations had $3,446,751 of net operating losses which can be carried forward to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $760,115 based on the expected future tax benefits from the net operating loss from the Company’s continuing operations carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.