Income Taxes

9 Months Ended

Mar. 31, 2024

NOTE 11 - INCOME TAXES

(a) Corporate income taxes

United States

China Health US was organized in the United States. China Health US had no taxable income for US income tax purposes for the nine months ended March 31, 2024 and 2023. As of March 31, 2024, China Health US had a net operating loss carry forward for United States income tax purposes. Net operating loss carry forwards are available to reduce future years’ taxable income. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s operating history and the continued losses of its US entity. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero. There were no changes in the valuation allowance for the nine months ended March 31, 2024 and 2023. Management reviews this valuation allowance periodically and makes adjustments accordingly.

Hong Kong

China Health HK was incorporated in Hong Kong and is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provision for income taxes have been made because China Health HK has no taxable income in Hong Kong.

People’s Republic of China

Under the EIT Law, the standard EIT rate is 25%. The PRC subsidiaries of the Company are subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate.

The provision for income taxes of the Company consisted of the following for the three and nine months ended March 31, 2024 and 2023:

	For the Three Months Ended				For the Nine Months Ended
	March 31,				March 31,
	2024		2023		2024		2023
Current provision:
USA	$	-	$	-	$	-	$	-
PRC		-		-		-		-
Total current provision		-		-		-		-
Deferred provision:		-		-		-		-
USA		-		-		-		-
PRC		-		-		-		-
Total deferred provision		-		-		-		-
Total provision for income taxes	$	-	$	-	$	-	$	-

Significant components of deferred tax assets of the Company were as follows:

	March 31,			June 30,
	2024			2023
Deferred tax assets
Net operating loss carry forward	$	687,309		$	1,007,658
Allowances for doubtful accounts		(7,521	)		(12,797	)
Valuation allowance		(679,788	)		(994,861	)
Total	$	-		$	-

The tax payable consisted of the following:

	March 31,		June 30,
	2024		2023

VAT payable	$	50,130	$	37,119
Income tax payable		22,114		22,020
Other tax payable		79,337		78,446
Total	$	151,581	$	137,585

(b) Uncertain tax positions

There were no unrecognized tax benefits as of March 31, 2024 and June 30, 2023. Management does not anticipate any potential future adjustments in the next twelve months which would result in a material change to its tax positions. For the nine months ended March 31, 2024 and 2023, the Company did not incur any interest or penalties arising from its tax payments.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

China Health Industries Holdings, Inc. 10-Q