INCOME TAX

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 12 – INCOME TAX

A. US resident companies are taxed on their worldwide income for corporate income tax purposes at a statutory rate of 21% this reflect certain effects of the Act which includes a reduction in the corporate tax rate from 35% to 21% as well as other changes. No further taxes are payable on this profit unless that profit is distributed. If certain conditions are met, income derived from foreign subsidiaries is tax exempt in the US under applicable tax treaties to avoid double taxation.

Income of the Israeli company is taxable from 2018 and onwards, at corporate tax rate of 23%.

The Company and its Israeli Subsidiary has not received final tax assessments since its inception.

As of December 31, 2021, the Company and its Israeli Subsidiary has carryforward losses for tax purposes of approximately $9,156,722 million and $2,755,469 million, respectively, which can be offset against future taxable income, if any.

B. The following is reconciliation between the theoretical tax on pre-tax income, at the tax rate applicable to the Company (federal tax rate) and the tax expense reported in the financial statements:

	Year ended December 31
	2021			2020
Pretax loss		4,596,813			872,793
Federal tax rate		21	%		21	%
Income tax computed at the ordinary tax rate		(965,331	)		(183,286	)
Non-deductible expenses		9,595			2,423
Stock-based compensation		588,865			-
Tax in respect of differences in corporate tax rates		(18,178	)		(13,860	)
Losses and timing differences in respect of which no deferred taxes were generated		385,049			194,723
		-			-

C. Deferred taxes result primarily from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Company’s future tax assets are as follows:

	Year ended December 31
	2021			2020
Composition of deferred tax assets:
Provision for employee related obligation		49,750			40,617
Allowance for doubtful accounts		3,994			7,127
Non capital loss carry forwards		2,561,464			2,182,415
Valuation allowance		(2,615,208	)		(2,230,159	)
	-			-

WORLD HEALTH ENERGY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars except share and per share data)