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INCOME TAXES | 12 Months Ended
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Oct. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 7 - INCOME TAXES The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. As part of the US government’s response to the Pandemic, we have received $701,568 in Employee Retention Credits, which provided funding to keep our employees. This has been recorded as other income for the year ended October 31, 2021. The provision (benefit) for income taxes comprises: SCHEDULE OF PROVISION (BENEFIT) FOR INCOME TAXES
|  | October 31, |  |  | October 31, |
|  | 2021 |  |  | 2020 |
Current federal benefit |  | $ | (25,429 | ) |  | $ | (12,502 | )
Foreign tax expense (benefit) |  |  | 42,021 |  |  |  | (38,161 | )
Total current tax expense (benefit) |  |  | 16,592 |  |  |  | (50,663 | )
Deferred federal expense |  |  | 288,887 |  |  |  | 305,125 |
Deferred foreign benefit |  |  | - |  |  |  | (196,240 | )
Deferred Tax Expense |  |  | 288,887 |  |  |  | 108,885 |
Total Income Tax Expense |  | $ | 305,479 |  |  | $ | 58,222 |
CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2021 and 2020 NOTE 7 - INCOME TAXES (Continued) The expense for income taxes differed from the U.S. statutory rate due to the following: SCHEDULE OF RECONCILIATION OF INCOME TAX BENEFIT
|  | October 31, |  |  | October 31, |
|  | 2021 |  |  | 2020 |
Statutory tax rate |  |  | 21.0 | % |  |  | 21.0 | %
Change in deferred taxes |  |  | (18.4 | )% |  |  | (17.1 | )%
Alternative Minimum Tax (refund) |  |  | 0.0 | % |  |  | (1.1 | )%
Foreign tax (benefit) expense |  |  | 3.2 | % |  |  | (1.1 | )%
Total |  |  | 5.8 | % |  |  | 1.7 | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES
|  | October 31, |  |  | October 31, |
|  | 2021 |  |  | 2020 |
Noncurrent deferred tax assets |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |
U.S. NOL carryforwards |  | $ | 15,930 |  |  | $ | 272,993 |
Stock option compensation |  |  | - |  |  |  | 92,669 |
Restricted Stock Awards |  |  | 72,970 |  |  | $ | - |
Book/Tax Depreciation |  |  | (12,124 | ) |  |  | - |
Foreign fixed assets |  |  | 18,168 |  |  |  | - |
Foreign deferreds |  |  | - |  |  |  | 196,240 |
Foreign NOL carryforwards |  |  | 148,650 |  |  |  | 143,563 |
Total |  |  | 243,594 |  |  |  | 705,465 |
Valuation allowance |  |  | (166,818 | ) |  |  | (143,563 | )
Total Deferred Asset |  | $ | 76,776 |  |  | $ | 561,902 |
As of October 31, 2021, we had U.S. federal net operating loss (NOL) carryforwards of $75,857, which expire in 2029. CODA OCTOPUS GROUP, INC. Notes to the Consolidated Financial Statements October 31, 2021 and 2020

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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