INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 12 – INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

For the years ended December 31, 2023, and 2022, the local (“United States of America”) and foreign components of loss before income taxes were comprised of the following:

	Year Ended December 31,
	2023			2022
Tax jurisdiction from:
- Local	$	(1,928,146	)	$	(3,589,034	)
- Foreign		(630,823	)		(836,615	)
Loss before income taxes	$	(2,558,969	)	$	(4,425,649	)

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of December 31, 2023, and 2022, are as follows:

	Year Ended December 31,
	2023			2022
Net Operating loss carryforward	$	2,650,650		$	4,425,649
Effective tax rate		21	%		21	%
Deferred tax asset		537,383			929,386
Foreign taxes		(256,668	)		(594,740
Less: valuation allowance		(280,715	)		(334,646
Net deferred tax asset	$	—		$	—

The Company has provided for a full valuation allowance against the deferred tax assets, on the expected future tax benefits from the net operating loss carryforwards, as the management believes it is more likely than not that these assets will not be realized in the future. The valuation allowance decreased by $53,931 and $414,168 during the years ended December 31, 2023, and 2022, respectively.

United States of America

Bubblr, Inc. is registered in the State of Wyoming and is subject to the tax laws of United States of America at a standard tax rate of 21%. Due to a change of control, the Company will not be able to carryover net operating losses (“NOL”) generated before August 13, 2020, to offset future income.

As of December 31, 2023, the operations in the United States of America incurred approximately $8,182,343 of cumulative NOL’s which can be carried forward indefinitely to offset future taxable income.

The Company’s tax returns are subject to examination by United States tax authorities beginning with the year ended December 31, 2018.

United Kingdom

The Company’s subsidiaries operating in the United Kingdom (“UK”) are subject to tax at a standard income tax rate of 19% on the assessable income arising in the UK during its tax year.

As of December 31, 2022, the operations in the UK incurred approximately $6,352,644 of cumulative NOLs which can be carried forward to offset future taxable income indefinitely. The Company has provided for a full valuation allowance against the deferred tax assets of $6,352,644 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

The Company’s tax returns are subject to examination by HM Revenue & Customs, for the years ended 2023 and 2022.