v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Notes and other explanatory information [abstract]  
INCOME TAXES

NOTE 20 – INCOME TAXES

 

The relevant companies’ tax applicable to the Company commencing from 2021 (Year of Amalgamation) and thereafter is 27%.

 

The relevant companies’ tax applicable to BYND commencing from 2018 and thereafter is 23%. Current taxes for the reported periods are calculated according to the said tax rate.

 

 

FEMTO TECHNOLOGIES INC.

Notes to the Consolidated Financial Statements

For the Years Ended for December 31, 2025, 2024 and 2023

(Expressed in Canadian dollars, unless otherwise noted)

 

NOTE 20 – INCOME TAXES (continued)

 

A reconciliation of income taxes at statutory rates with the reported taxes is as follows: 

 

   December 31, 2025   December 31, 2024   December 31, 2023 
Income (loss) before tax  $12,955,376   $(47,588,970)  $(18,466,962)
Income tax rate   27% and 23%   27% and 23%   27% and 23%
Expected income expense (recovery)   3,498,154    (12,851,939)   (4,889,258)
Permanent differences   (7,127,858)   8,738,305    971 
Prior years reassessment of tax expense   -    -    - 
Change in unrecognized deferred assets   (32,220)   1,907    (20,073)
Change in valuation allowance   3,631,414    4,085,102    4,600,864 
Other   63,592    27,912    335,655 
Total income tax expense  $33,082   $1,287   $28,159 
                
Current income tax  $33,082   $1,287   $28,159 
Deferred income tax   -         - 
Total income tax expense  $33,082   $1,287   $28,159 

 

Temporary differences that give rise to the following deferred tax assets and liabilities at are:

 

   December 31, 2025   December 31, 2024 
Deferred tax assets          
Non-capital loss carry forwards – Canada   12,962,175    9,330,761 
Non-capital loss carry forwards – Israel   -    - 
Non-capital loss carry forwards  $12,962,175   $9,330,761 
Valuation allowance   (12,962,175)   (9,330,761)
Net deferred tax assets  $-   $- 

 

The Company has Canadian non-capital losses of $46,793,030 which is available to offset future years’ taxable income in Canada.

 

BYND has $nil (2024 - $nil) in non-capital losses carried forward for tax purposes, which can be carried forward indefinitely to be offset against future business income and business capital gains.

 

Tax attributes are subject to review, and potential adjustment, by tax authorities.