INCOME TAXES

6 Months Ended

Jun. 30, 2023

NOTE 11 – INCOME TAXES

The Company’s primary operations are in the PRC, and in accordance with the relevant tax laws and regulations. The corporate income tax rate for each country is as follows:

United States of America

The Company is registered in the State of Delaware and is subject to United States of America tax law. The U.S. federal income tax rate is 21%.

The British Virgin Islands

Under the current laws of the British Virgin Islands, ZXG Holding Ltd. is registered as a BVI business company which governs by the International Business Companies Act of British Islands and there is no income tax charged in British Virgin Islands.

Hong Kong

Hong Kong Zuixiangui International Holding Co., Ltd. is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 8.25% on its assessable income.

People’s Republic of China

Zui Xian Gui International Holding (Shenzhen) Ltd. and Shenzhen Zui Xian Gui Brewery Technology Ltd. are operating in the People’s Republic of China (“PRC”) subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. During the period ended June 30, 2023, the operations in People’s Republic of China incurred the net loss of $245,492 which can be used to offset the carry forwards retained earnings within 5 years that started from year 2023 to year 2027.

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the six months ended June 30, 2023, and 2022:

Schedule of income tax expenses
	Six months ended June 30,
	2023			2022
Loss attributed to PRC operations	$	(48,999	)	$	-
PRC Statutory tax at 25% rate		-			-
Effect of PRC deductions and other reconciling items		-			-
Income tax	$	-		$	-

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the period ended June 30, 2023, and 2022:

Schedule of effective tax rates
	Six months ended June 30,
	2023			2022
U.S. federal statutory income tax rate		21.0	%		21.0	%
Higher rate in PRC, net		4.0	%		4.0	%
Reconciling items, net operating losses in PRC, election to not recognize tax asset		-25.0	%		-25.0	%
The Company’s effective tax rate		-	%		-	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

TRANS GLOBAL GROUP, INC. 10-Q