XML 42 R20.htm IDEA: XBRL DOCUMENT
v3.25.2

Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Taxes | Note 12 – Taxes Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Infobird HK and Inforbird Technologies are incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, Infobird HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. BVI Under the current laws of BVI, Pure Tech is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no BVI withholding tax will be imposed. PRC Infobird WFOE, Infobird Beijing, Infobird Anhui, Infobird Guiyang, Shanghai Qishuo, Anhui Weiao, Guangnian Zhiyuan, Beijing Suowangda, Pinmu Century and Zhenxi Brand are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Infobird Beijing maintained the “high-tech enterprise” tax status which is validated until October 2023, which reduced its statutory income tax rate to 15%. Pinmu Century maintained the “high-tech enterprise” tax status which is validated until October 2026, which reduced its statutory income tax rate to 15%. Infobird Guiyang qualifies for 15% preferential income tax rate for enterprises whose core business is one of the industrial projects listed in the Catalogue of Encouraged Industries in western regions of China. EIT also grants preferential tax treatment to certain Small and Micro Enterprises (“SMEs)”. Under this preferential tax treatment, SMEs with revenues under RMB1,000,000 (approximately USD138,972) are entitled to an income tax rate of 20% base on a 25% taxable income. Guangnian Zhiyuan, Beijing Suowangda are eligible for the 20% tax rate. Besides, Zhenxi Brand is a wholly owned enterprise which is not applicable to income tax under the law of PRC. In addition, 200% of research and development expenses of Infobird Beijing, Infobird Anhui, Infobird Guiyang, Shanghai Qishuo, Anhui Weiao and Pinmu Century are subject to additional deduction from pre-tax income while such deduction cannot exceed the total amount of pre-tax income. Tax savings for the years ended December 31, 2024, 2023 and 2022 amounted to approximately $0.1 million, 0 nil and nil respectively, with the 10% preferential tax rate reduction and additional deduction of 200% of research and development expenses. The Company’s basic and diluted earnings per shares would have been lower by approximately $0.0, nil and nil per share for the years ended December 31, 2024, 2023 and 2022 respectively, without the preferential tax rate reduction and research and development expenses reduction. Income tax (credits)/expenses for the years ended December 31, 2024, 2023 and 2022 amounted to $21,008, 0 nil and $(77,649), respectively. Significant components of the provision for income taxes for the continuing operations and discontinued operations are as follows:
Schedule of provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |
|  | For the year ended December 31, 2024 |  | For the year ended December 31, 2023 |  | For the year ended December 31, 2022
Continuing operations: |  |  |  |  |  |  |  |  |  |  |  |
Current income tax expenses |  | $ | 21,008 |  |  | $ | — |  |  | $ | — |
Deferred income tax expenses |  |  | — |  |  |  | — |  |  |  | — |
Total income tax expenses |  | $ | 21,008 |  |  | $ | — |  |  | $ | — |
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |
Current income tax expenses |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred income tax (credit) |  |  | — |  |  |  | — |  |  |  | (77,649 | )
Total income tax (credit) |  | $ | — |  |  | $ | — |  |  | $ | (77,649 | )
The following table reconciles China statutory rates to the Company’s effective tax rate of continuing operations and discontinued operations:
Schedule of statutory tax rates |  |  |  |  |  |  |  |  |  |  |  |
|  | For the year ended |  | For the year ended |  | For the year ended
|  | December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Continuing operations: |  |  |  |  |  |  |  |  |  |  |  |
China statutory income tax rate |  |  | 25 | % |  |  | — |  |  |  | — |
Preferential tax rate reduction |  |  | (19.3 | )% |  |  | — |  |  |  | — |
200% deduction on research and development expenses |  |  | (1.0 | )% |  |  | — |  |  |  | — |
Change in valuation allowance |  |  | (4.0 | )% |  |  | — |  |  |  | — |
Permanent difference |  |  | (12.6 | )% |  |  | — |  |  |  | — |
Others |  |  | 6.1 | % |  |  |  |  |  |  |  |
Effective tax rate |  |  | (5.8 | )% |  |  | — |  |  |  | — |
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |
China statutory income tax rate |  |  | — |  |  |  | 25 | % |  |  | 25 | %
Preferential tax rate reduction |  |  | — |  |  |  | (9.6 | )% |  |  | (8.4 | )%
200% deduction on research and development expenses |  |  | — |  |  |  | — |  |  |  | — |
Tax rate difference outside of PRC |  |  | — |  |  |  | — |  |  |  | (3.4 | )%
Change in valuation allowance |  |  | — |  |  |  | (15.3 | )% |  |  | (12.6 | )%
Permanent difference |  |  | — |  |  |  | (0.1 | )% |  |  | (0.1 | )%
Effective tax rate |  |  | — |  |  |  | — |  |  |  | 0.5 | %
Deferred tax assets and liabilities – China Significant components of deferred tax assets and liabilities of continuing operations were as follows:
Schedule of deferred tax assets and liabilities |  |  |  |  |  |  |  |
|  | December 31, |  | December 31,
Deferred tax assets: |  | 2024 |  | 2023
Net operating loss carryforward |  | $ | 20,018 |  |  | $ | 19,551 |
Lease liabilities |  |  | 59,837 |  |  |  | — |
Deferred tax assests |  |  | 79,855 |  |  |  | 19,551 |
ROU assets |  |  | (61,717 | ) |  |  | — |
Deferred tax liabilities |  |  | (61,717 | ) |  |  | — |
Valuation allowance |  |  | (18,138 | ) |  |  | (19,551 | )
Deferred tax assets (liabilities), net |  | $ | — |  |  | $ | — |
Non-current deferred tax assets |  | $ | — |  |  | $ | — |
Non-current deferred tax liabilities |  |  | — |  |  |  | — |
Deferred tax (liabilities) assets, net |  | $ | — |  |  | $ | — |
The Company had net operating loss (NOL) carryforward of approximately $0.1 million and $0.1 million from the Company’s PRC and Hong Kong subsidiaries as of December 31, 2024 and 2023, respectively. As the Company believes it is more likely than not that its PRC and Hong Kong operations will not be able to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC and Hong Kong, the Company provided 100% allowance on deferred tax assets net of deferred tax liabilities of approximately $0.1 million and $0.0 related to PRC and Hong Kong subsidiaries as of December 31, 2024 and 2023, respectively. Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interest and penalties tax for the years ended December 31, 2024, 2023, and 2022. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve (12) months from December 31, 2024. Value added tax All of the Company’s service revenues that are earned and received in the PRC are subject to a Chinese VAT at a rate of 6% of the gross proceeds or at a rate approved by the Chinese local government. Taxes payable consisted of the following:
Schedule of taxes payable |  |  |  |
|  | December 31, 2024 |  | December 31, 2023
VAT taxes payable |  | $ | 316,105 |  |  | $ | — |
Income taxes payable |  |  | 203,494 |  |  |  | — |
Other taxes payable |  |  | 9,351 |  |  |  | 594 |
Total taxes payable |  | $ | 528,950 |  |  | $ | 594 |
Less: taxes payable - discontinued operations |  |  | — |  |  |  | — |
Taxes payable - continuing operations |  | $ | 528,950 |  |  | $ | 594 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration