ABVC BIOPHARMA, INC. Income Taxes Disclosure
11. INCOME TAXES
Income tax (benefit) expense for the years ended December 31, 2024 and 2023 consisted of the following:
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Current: | ||||||||
| Federal | $ | $ | ||||||
| State | ||||||||
| Foreign | (110,539 | ) | 140,338 | |||||
| Total Current | $ | (110,539 | ) | $ | 140,338 | |||
| Deferred: | ||||||||
| Federal | $ | $ | ||||||
| State | ||||||||
| Foreign | 115,668 | |||||||
| Total Deferred | $ | $ | 115,668 | |||||
| Total provision for income tax (benefit) expense | $ | (110,539 | ) | $ | 256,006 | |||
Deferred tax assets (liability) as of December 31, 2024 and 2023 consist approximately of:
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Loss on impairment of Assets | 713,223 | 713,223 | ||||||
| Net operating loss carryforwards | 5,677,413 | 5,018,343 | ||||||
| Operating lease liabilities | 178,014 | 213,482 | ||||||
| Operating lease assets | (178,014 | ) | (213,482 | ) | ||||
| Deferred tax assets, Gross | 6,390,636 | 5,731,566 | ||||||
| Valuation allowance | (6,390,636 | ) | (5,731,566 | ) | ||||
| Deferred tax assets, net | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 15, 2025 | Showing above |
| 2023 | Mar 13, 2024 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.