VISTA GOLD CORP Income Taxes Disclosure

10. Income Taxes

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The Company’s income/(loss) before provision for income taxes consisted of the following:

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During the years ended December 31, 2025 and 2024, the Company recognized $nil current and deferred income tax expense or benefit in each of the U.S. and foreign jurisdictions, due to full valuation allowances within each jurisdiction.

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Deferred Taxes

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Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating losses and tax credit carryforwards. The tax effects of significant items comprising the Company's deferred taxes are as follows:

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Valuation Allowance on Deferred Tax Assets

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ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is "more likely than not." Realization of the future tax benefits is dependent on the Company's ability to generate sufficient taxable income within the carryforward period. Because of the Company's recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The valuation allowance increased by 5,000 during 2025.

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Loss Carryforwards

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Net operating and capital loss carryforwards as of the December 31, 2025 are as follows:

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Rate Reconciliation

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The effective tax rate of the Company's provision (benefit) for income taxes differs from the federal statutory rate as follows:

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Tax Statute of Limitations

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The Company files income tax returns in Canada, U.S. federal and state jurisdictions, and other foreign jurisdictions. There are currently no tax examinations underway for these jurisdictions. Furthermore, the Company is no longer subject to Canadian tax examinations by the Canadian Revenue Agency for years ended on or before December 31, 2021 or U.S. federal income tax examinations by the Internal Revenue Service for years ended on or before December 31, 2021. Some U.S. state and other foreign jurisdictions are still subject to tax examination for years ended on or before December 31, 2020.

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Although certain tax years are closed under the statute of limitations, tax authorities can still adjust losses being carried forward to open years. See Note 8 for discussion of ongoing legal matters associated with an assessment by the SAT.