Aureus Greenway Holdings Inc Income Taxes Disclosure

Note 12 – Income Tax

 

The Company provides for income tax under ASC 740, “Income Taxes” under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The Company is incorporated in the State of Nevada and is not subject to tax on income or capital gains under current Nevada law. In addition, upon payments of dividends by these entities to their shareholders, no Nevada withholding tax will be imposed.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the new federal statutory rate of 21% and state of Florida tax rate of 5.5% to the income tax amount recorded for the years ended December 31, 2025 and 2024 are as follows:

 

Taxation in the statements of operations represents:

 Schedule of Taxation in the Statements of Income

		2025				2024
		For the Years Ended December 31,
		2025				2024
Tax provision for the year:
Current			-				-
Deferred
● Federal statutory tax
- Deferred tax assets
- recognition for the year			(65,068	)			-
- utilization of NOLs brought forward			-				8,632
- Deferred tax liabilities
- (reversal) recognition for the year			(7,372	)			7,959
Deferred tax assets Liabilities			(72,440	)			16,591
● State of Florida tax
- Deferred tax assets
- recognition for the year			(17,027	)			-
- utilization of NOLs brought forward			-				346
- Deferred tax liabilities
- (reversal) recognition for the year			(1,945	)			3,999
Deferred tax assets Liabilities			(18,972	)			4,345
Total income tax (benefits) expenses			(91,412	)			20,936

 

 

A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of operations to the federal statutory rate of 21% for the years ended December 31, 2025 and 2024 is as follows:

 Schedule of Reconciliation of Statutory Federal Income Tax Rate and Effective Income Tax Rate

		2025				2024
		For the Years Ended December 31,
		2025				2024
Federal statutory tax rate			21.0	%			21.0	%
Effect of state of Florida tax			0.5	%			5.5	%
Effect of state of Nevada tax*			(18.6	)%			(38.5	)%
Effect of BVI tax			0.0	%			0.0	%
Permanent difference			(0.5	)%			(0.9	)%
Effective tax rate			2.4	%			(12.9	)%

 

*	Effect of state of Nevada tax represented the audit fee expenses in relation to IPO and operating costs incurred by the Company which is incorporated in the state of Nevada which is not subject to state income tax.

 

Significant components of the deferred tax assets and deferred tax liabilities are presented below:

 Schedule of Deferred Tax Assets and Liabilities

		2025				2024
		As of December 31,
		2025				2024
Deferred tax liabilities:
Accelerated depreciation
Federal statutory tax:
Beginning of the year		$	48,132			$	40,173
(Reversal) recognized during the year			(7,372	)			7,959
End of the year			40,760				48,132
State of Florida tax:
Beginning of the year			11,982				7,983
(Reversal) recognized during the year			(1,945	)			3,999
End of the year			10,037				11,982
Deferred tax liabilities		$	50,797			$	60,114
Deferred tax assets:
Net operating losses
Federal statutory tax:
Beginning of the year		$	186,759			$	195,391
Recognized during the year			65,068				-
Utilized during the year			-				(8,632	)
End of the year			251,827				186,759
State of Florida tax:
Beginning of the year		$	40,393				40,739
Recognized during the year			17,027				-
Utilized during the year			-				(346	)
End of the year			57,420				40,393
Less: valuation allowance			-				-
Deferred tax assets, net		$	309,247			$	227,152

 

The Group evaluated the recoverable amounts of deferred tax assets to the extent that future taxable profits will be available against which the net operating loss and temporary difference can be utilized.

 

As of December 31, 2025 and 2024, the Company had $1,166,970 and $857,177, respectively, of NOLs which can be carried forward indefinitely.

 

The NOLs carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382.