BioNexus Gene Lab Corp Income Taxes Disclosure
NOTE 4 – INCOME TAXES
The Company provides for income taxes under ASC 740, “Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statements and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
Provision for income taxes consisted of the following:
United States of America
The Company is registered in the State of Wyoming and is subject to the tax laws of the United States of America.
Malaysia
MRNA Scientific Malaysia and Chemrex are both subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range from 15% to 24% on its assessable income.
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| As of |
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| December 31, |
|
| December 31, |
| ||
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| 2024 |
|
| 2023 |
| ||
Tax Recoverable |
|
|
|
|
|
| ||
Local |
| $ | - |
|
| $ | - |
|
Foreign, representing Malaysia |
|
| (84,167 | ) |
|
| (57,588 | ) |
Tax Recoverable |
|
| (84,167 | ) |
|
| (57,588 | ) |
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|
|
|
|
|
|
|
|
Income tax liabilities: |
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|
|
|
|
|
|
|
Local |
| $ | - |
|
| $ | - |
|
Foreign, representing Malaysia |
|
| - |
|
|
| - |
|
Income tax payables |
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Local |
| $ | - |
|
| $ | - |
|
Foreign, representing Malaysia |
|
| - |
|
|
| 12,255 |
|
Deferred tax liabilities |
|
| - |
|
|
| 12,255 |
|
Total |
|
| (84,167 | ) |
|
| (45,333 | ) |
Although the Company is domiciled in the United States, a substantial portion of its pre-tax income/(loss) is generated by its foreign subsidiaries. Accordingly, the consolidated effective tax rate is significantly influenced by foreign tax jurisdictions and certain non-deductible expenses.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 15, 2025 | Showing above |
| 2023 | Apr 16, 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.