INCOME TAXES

12 Months Ended

Jun. 30, 2024

NOTE 12 – INCOME TAXES

Deferred taxes represent the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes. Temporary differences result primarily from the recording of tax benefits of net operating loss carry forwards.

As of June 30, 2024, the Company has an insufficient history to support the likelihood of ultimate realization of the benefit associated with the deferred tax asset. Accordingly, a valuation allowance has been established for the full amount of the net deferred tax asset.

Under the Provisional Regulations of The People’s Republic of China Concerning Income Tax on Enterprises promulgated by the PRC, which took effect on January 1, 2008, domestic and foreign companies pay a unified corporate income tax of 25%, except for a 15% corporate income tax rate for qualified high technology and science enterprises.

The Company’s effective income tax rate differs from the amount computed by applying the federal statutory income tax rate to loss before income taxes for the years ended June 30, 2024 and 2023 as follows:

	Year Ended June 30,
	2024			2023
Income tax benefit at federal statutory rate-US		21	%		21	%
State tax, net of fed effect-US		7	%		7	%
Change in valuation allowance-US		(28	)%		(28	)%
Income tax benefit at federal statutory rate-PRC		25	%		25	%
Change in valuation allowance-PRC		(25	)%		(25	)%

The components of deferred taxes consist of the following at June 30, 2024 and 2023:

	June 30, 2024			June 30, 2023
Net operating loss carryforwards	$	7,924,234		$	6,697,872
Less: valuation allowance		(7,924,234	)		(6,697,872	)
Net deferred tax assets	$	-		$	-

As of June 30, 2024, the Company had federal and California income tax net operating loss carryforwards of $7,924,234. These net operating losses originating in tax years beginning prior to Jan. 1, 2018, will begin to expire 20 years from the date the tax returns are filed. The net operating losses originating in tax years beginning after Jan. 1, 2018, will be carried forwarded indefinitely.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

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