v3.26.1
Income Tax Expenses
 3 Months Ended
Mar. 31, 2026
Income Tax Expenses [Abstract]  
INCOME TAX EXPENSES

NOTE 12 – INCOME TAX EXPENSES 

 

Next Technology Holding Inc. in Wyoming is subject to U.S. federal income tax at 21% and a state income tax rate of nil. The Company owns a subsidiary incorporated in Hong Kong and are subject to Hong Kong profits tax at a tax rate of 16.5%. The Company owns another subsidiary incorporated in the British Virgin Islands (BVI). Under the current tax laws of BVI, the subsidiary’s income tax rate is nil.

 

The current and deferred portions of income tax expense included in the consolidated statements of comprehensive loss are as follows:

 

   For the Three Months ended
March 31,		 
   2026   2025 
Current income tax expense  $
-
   $
-
 
Deferred income tax (benefit) expense   (27,294,512)   51,420,873 
Total  $(27,294,512)  $51,420,873 

 

The (loss) income before income tax for domestic and foreign component’s were as follows:

 

   For the Three Months ended
March 31,		 
   2026   2025 
US  $(133,146,243)  $244,861,298 
Hongkong and BVI   
-
    
-
 
Total  $(133,146,243)  $244,861,298 

For the three months ended March 31, 2026 and 2025, the Company paid nil for income expense.

 

The following table reconciles the statutory rate to the Company’s effective tax rate. The effective tax rate reconciliation is based on the U.S. federal statutory rate of 21% and State income tax rate of nil.  

 

   For the Three Months ended
March 31,		 
   2026   2025 
US Statutory income tax rates   21.0%   21.0%
Share-based compensation expense   (0.5)%   
-
%
Effective income tax rate   20.5%   21.0%

 

The principal components of deferred tax assets and deferred tax liabilities are as follows: 

 

   As of
March 31,
2026		   As of
December 31,
2025		 
Deferred tax liabilities        
Fair value gain of Bitcoin  $43,379,426   $69,946,762 
Less: Net operating loss carry forward   (6,057,596)   (5,330,420)
Total deferred tax liabilities  $37,321,830   $64,616,342 

 

As of March 31, 2026 and December 31, 2025, the Company had net operating loss carry forwards (“NOLs”) of $28.8 million and $25.4 million for U.S. federal income tax purposes. The federal NOLs do not expire but are subject to an annual deduction limit of 80% of taxable income.