INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

10. INCOME TAXES

For the years ended December 31, 2024 and 2023, the local (United States) and foreign components of income (loss) before income taxes were comprised of the following:

	For the year ended December 31,
	2024			2023
Tax jurisdictions from:	$			$
- Local		(60,363	)		(135,274	)
- Foreign, representing
Seychelles		-			-
Hong Kong		46			(78	)
China		(525,013	)		(771,774	)
Income (loss) before income tax	$	(585,330	)	$	(907,126	)

Effective and Statutory Rate Reconciliation

The following table summarizes a reconciliation of the Company’s blended statutory income tax rate to the Company’s effective tax rate as a percentage of income from continuing operations before taxes:

	For the year ended December 31,
	2024			2023
Statutory tax rate:		21.0	%		21.0	%
Change in income tax valuation allowance		(21.5	)%		(21.5	)%
Effective tax rate		(0.5	)%		(0.5	)%

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. the Company has subsidiaries that operate in various countries: United States, Seychelles, Hong Kong and China that are subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America and the tax rate is 21%.

The Tax Cut and Jobs Act (TCJA) enacted in late 2017 added rules that require the US parent company to include in income certain low taxed income. The company is subject to the these so called GILTI (Global Intangible Low-taxed Income) rules due to their presence in the China, Hong Kong and the Seychelles. The GILTI tax has been properly reflected in their tax provision calculation for the year ended December 31, 2024.

EZAGOO LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Currency expressed in United States Dollars (“US$”), except for number of shares)

Seychelles

Under the current laws of the Seychelles, Ezagoo Holding Limited is registered as an international business company which governs by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles.

HongKong

From the year of assessment of 2018/19 onwards, Hong Kong profit tax rate are 8.25% on assessable profits up to HK$2,000,000 (approximately $255,428), and 16.5% on any part of assessable profits over HK$2,000,000. For the years ended December 31, 2024 and 2023, the Company did not have any assessable profits arising in or derived from Hong Kong, therefore no provision for Hong Kong profits tax was made in the year.

People’s Republic of China

Changsha Ezagoo Technology Limited, Beijing Ezagoo Zhicheng Internet Technology Limited and its Changsha Branch company are operating in the People’s Republic of China (“PRC”) subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. For the years ended December 31, 2024 and 2023, the Company did not have any assessable profits arising in or derived from PRC, therefore no provision for PRC income tax was made in the year.

	As of December 31,
	2024			2023
Deferred tax assets:	$			$
Net operating loss carryforwards
– United States of America		25,690			41,421
– Hong Kong		2,137			4,282
– The PRC		1,167,843			1,036,117
		1,195,670			1,073,256
Less: valuation allowance		(1,195,670	)		(1,073,256	)
Deferred tax assets	$	-		$	-