INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10 — INCOME TAXES

United States (U.S.)

HeartCore USA is a holding company registered in the State of Delaware incorporated in May 2021. The U.S. federal income tax rate is 21%. No provision for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the nine months ended September 30, 2022 and 2021.

Japan

The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. Income taxes in Japan applicable to the Company are imposed by the national, prefectural, and municipal governments and in the aggregate resulted in an effective statutory rate of approximately 34.59% and 30.62%, respectively, for the nine months ended September 30, 2022 and 2021.

For the nine months ended September 30, 2022 and 2021, the Company’s income tax expenses (benefits) are as follows:

	For the Nine Months Ended
	September 30,
	2022			2021
Current	$	(2,108	)	$	9,970
Deferred		(8,798	)		87,467
Income tax expense (benefit)	$	(10,906	)	$	97,437

The effective tax rate was 0.21% and 19.02% for the nine months ended September 30, 2022 and 2021, respectively.