INCOME TAX

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 15 – INCOME TAX

A. The Company is subject to the U.S. federal income tax rate of 21% plus state income tax rates which vary from state to state.

Income of the Israeli company is taxable at enacted tax rate of 23%.

Income of the Poland company is taxable at enacted tax rate between 9% - 19%.

The Company and its Israeli and Polish subsidiaries have not received final tax assessments since the subsidiaries’ inception.

The Company’s tax years beginning 2016 are open for assessment and, for the subsidiaries, all tax years from commencement are open for assessment.

As of December 31, 2023, the Company and its subsidiaries have carryforward losses for tax purposes of approximately $28,782 thousand and $3,284 thousand, respectively, which can be offset against future taxable income, if any. As of December 31, 2023, approximately $26.9 million will expire between the years 2036 and 2040, and the remainder has no expiration date.

B. Composition of loss for the year:

	Year ended December 31
	2023		2022
		U.S. Dollars
U.S.		6,050,025		9,275,822
Israel		844,815		641,825
Poland		144,474		28,728
		7,039,314		9,946,375

C. The following is a reconciliation between the income tax benefit calculated using the federal income tax rate applicable to the Company and the income tax expense reported in the financial statements:

	Year ended December 31
	2023			2022
	U.S. Dollars
Pretax loss		7,039,314			9,946,375
U.S. federal income tax rate		21	%		21	%
Income tax benefit computed at the U.S. federal income tax rate		(1,478,256	)		(2,088,739	)
Non-deductible expenses		3,301			8,970
Share-based compensation		1,179,537			1,988,192
Remeasurement of deferred taxes due to currency exchange and change in estimations		-			(313,233	)
Effect of differences in corporate income tax rates		3,056			(4,828	)
Other timing differences		24,165			-
Change in valuation allowance		268,197			409,638
		-			-

WORLD HEALTH ENERGY HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 15 – INCOME TAX (continue)

D. Deferred taxes are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31
	2023		2022
Composition of deferred tax assets:	U.S. Dollars in thousands
Operating loss carry forwards		6,776,409		6,508,213
Share-based compensation		3,604,097		2,577,057
Accrued compensation		62,588		54,425
Total deferred tax assets		10,443,094		9,139,695
Valuation allowance		10,443,094		9,139,695
Total deferred Tax assets		-		-