INCOME TAXES

6 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

INCOME TAXES

7. INCOME TAXES

(a) Enterprise Income Tax (“EIT”)

Tancheng Group Co., Ltd. was incorporated in the State of Nevada. Tancheng Group Co., Ltd. is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Tancheng Group Co., Ltd. had no United States taxable income for the six month period ended June 30, 2026 and 2025.

Qiansui International was incorporated in the Cayman Islands. Under the current tax laws of Cayman Islands, Qiansui International is not subject to taxation.

Qiansui HK was incorporated in Hong Kong and is subject to an income tax rate of 16.5% for taxable income generated from operations in Hong Kong.

Qiansui Consulting and Qiansui Media were incorporated in the PRC and they are subject to profits tax rate at 25% for income generated and operation in the country.

The Company operates its business through a subsidiary incorporated in the PRC which is subject to a corporate income tax rate of 25%. A reconciliation of the effective tax rates from 25% statutory tax rates for the six month period ended June 30, 2026 and 2025 is as follows:

	For the three months ended June 30,
	2026			2025
Loss before tax	$	(91,078	)	$	(85,157	)
Tax benefit calculated at statutory tax rate		25%			25%
Computed expected benefits		(22,770	)		(21,289	)
Non-deductible expenses		3,580			6,003
Change in valuation allowance		19,187			15,286
Tax effect on tax losses expired		3			–
Income tax expense	$	–		$	–

	For the six months ended June 30,
	2026			2025
Loss before tax	$	(249,192	)	$	(207,364	)
Tax benefit calculated at statutory tax rate		25%			25%
Computed expected benefits		(62,299	)		(51,841	)
Non-deductible expenses		4,601			29,327
Change in valuation allowance		57,355			21,655
Tax effect on tax losses expired		343			859
Income tax expense	$	–		$	–

The full realization of the tax benefit associated with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry-forward period.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain.

As of June 30, 2026 and December 31, 2025, the Company’s deferred tax assets solely represent the tax loss carried forward using the PRC statutory rate of 25%. As management of the Company believes that it is more likely than not that the benefit from the tax loss carried forwards will not be realized, the Company recorded a full valuation allowance for all the reporting periods. There were no deferred tax liabilities as of June 30, 2026 and December 31, 2025.

As of June 30, 2026 and December 31, 2025, the significant components of the deferred tax assets are summarized below:

	As of June 30,			As of December 31,
	2026			2025
Deferred tax assets:
Net operating loss carried forward	$	383,330		$	315,651
Total deferred tax assets		383,330			315,651
Total deferred tax liabilities		–			–
Total deferred tax assets, net		383,330			315,651
Less: valuation allowance		(383,330	)		(315,651	)
Total deferred tax assets, net of valuation allowance	$	–		$	–

Changes in valuation allowance are as follows:

	As of June 30,			As of December 31,
	2026			2025
Balance at the beginning of the period	$	315,651		$	224,006
Increase		58,725			25,102
Decrease		(1,370	)		(3,447	)
Exchange differences		10,324			69,990
Balance at end of the period	$	383,330		$	315,651

(b) Value Added Tax (“VAT”)

The Company is subject to VAT and related surcharges on revenue generated from sales of products. The Company records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Company to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other current liabilities on the consolidated balance sheets. The Group incurs VAT related surcharges based on net VAT balance paid.

For revenue generated from the sales of goods, the applicable value-added tax (“VAT”) rate is 13%, depending on whether the entity is a general VAT taxpayer, along with related surcharges. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities.