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TAXATION (Tables)

12 Months Ended

Dec. 31, 2023

The provisions for income taxes for the years ended December 31, 2023, 2022 and 2021 are summarized as follows:

	Years ended December 31,
In thousands of USD	2023			2022			2021
Current income tax (benefit) / expenses		11,825			(8,244	)		13,125
Deferred income tax (benefit) / expenses		(6,140	)		3,844			35,121
Total		5,685			(4,400	)		48,246

Reconciliation of Income Tax Benefit / (Expenses)

The reconciliation between the income tax benefit / (expenses) calculated by applying the applicable tax rate of 17% to the profit / (loss) before income tax and the net income tax benefit / (expenses) as shown in the statements of operations and comprehensive income / (loss) for the years ended December 31, 2023, 2022 and 2021 is as follows.

	Years ended December 31,
	2023			2022			2021
Statutory income tax rate		17.00	%		17.00	%		17.00	%
Effect of expenses not deductible for tax purpose		(24.21	%)		(22.71	%)		11.99	%
Effect of income tax difference under different tax jurisdictions		0.53	%		(4.03	%)		5.64	%
Effect of deductible temporary differences not recognized		0.49	%		0.75	%		0.63	%
Prior year true-ups		(5.06	%)		16.05	%		2.11	%
Effect of non-taxable income		-			-			(0.60	%)
Others		0.10	%		(0.27	%)		0.09	%
Total		(11.15	%)		6.79	%		36.86	%

Components of Deferred Tax Assets / (Liabilities)

Deferred tax assets / (liabilities) as of December 31, 2023 and 2022 comprise the following:

	At December 31,
In thousands of USD	2023			2022
Deferred tax assets
Net operating losses		136			4,324
Share-based payments		3,573			2,672
Deferred revenue		4,184			-
Property, plant and equipment, intangible assets and right-of-use assets		1,120			533
Total deferred tax assets		9,013			7,529
Set-off of deferred tax positions relate to income taxes levied by the same tax authority		(8,022	)		(2,672	)
Deferred tax assets		991			4,857
Deferred tax liabilities
Property, plant and equipment and intangible assets		(9,642	)		(14,298	)
Set-off of deferred tax positions relate to income taxes levied by the same tax authority		8,022			2,672
Deferred tax liabilities		(1,620	)		(11,626	)

Net deferred tax liabilities		(629	)		(6,769	)

Movements in Net Deferred Tax Assets and Liabilities)

The movements in the net deferred tax assets / (liabilities) during the years ended December 31, 2023, 2022 and 2021 are as follows:

In thousands of USD	January 1, 2023			Recognized in profit or loss			December 31, 2023
Tax losses carried forward		4,324			(4,188	)		136
Share-based payments		2,672			901			3,573
Deferred revenue		-			4,184			4,184
Property, plant and equipment, intangible assets and right-of-use assets		(13,765	)		5,243			(8,522	)
Net deferred tax assets / (liabilities)		(6,769	)		6,140			(629	)

In thousands of USD	January 1, 2022			Recognized in profit or loss			December 31, 2022
Tax losses carried forward		4,362			(38	)		4,324
Share-based payments		-			2,672			2,672
Property, plant and equipment		(7,287	)		(6,478	)		(13,765	)
Net deferred tax liabilities		(2,925	)		(3,844	)		(6,769	)

In thousands of USD	January 1, 2021		Recognized in profit or loss			Charged to invested capital ⁽¹⁾		December 31, 2021
Tax losses carried forward		23,592		(21,324	)		2,094		4,362
Accrued expenses		704		(704	)		-		-
Property, plant and equipment		5,806		(13,093	)		-		(7,287	)
Net deferred tax assets / (liabilities)		30,102		(35,121	)		2,094		(2,925	)

(1)

Deferred tax assets charged to invested capital is due to the Group recognizing deferred tax assets related to tax losses carried forward based on the tax losses available to the individual legal entities within the Group during the Carve-out Period, which creates differences between the income tax benefit or expense determined based on the operation results of the Bitdeer Business.

Expirations of Unused Tax Losses

The Group has not recognized deductible temporary differences and a portion of the tax loss carryforward because the criteria for recognition (i.e., the probability of future taxable profits) were not met. The amount of such unused tax losses will expire as follows:

Tax Jurisdiction	Amount in thousands of USD		Earliest year of expiration if not utilized
Singapore		5,297	Indefinitely
Hong Kong		4,143	Indefinitely
Norway		14,591	Indefinitely
Bhutan		678		2026
Total		24,709