VolitionRx Ltd Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes

Income Taxes

12 Months Ended

Dec. 31, 2016

The Company has estimated net operating losses for the years ended December 31, 2016 and 2015 of $11,000,471 and $8,774,691, respectively, available to offset taxable income in future years.

The Company is subject to Singapore income taxes at a rate of 17 percent, Belgium income taxes at a rate of 34 percent, UK taxes at a rate of 20 percent and U.S. taxes at a rate of 35 percent, for a weighted average of 28 and 26 percent, respectively. The reconciliation of the provision for income taxes at the weighted average rate compared to the Company’s income tax expense as reported is as follows:

	2016 $			2015 $

Net loss		(11,905,278	)		(9,530,242	)
Tax adjustments		904,807			755,551
Estimated net operating losses		(11,000,471	)		(8,774,691	)

Tax rate		28	%		26	%

Income tax recovery at statutory rate		(3,061,493	)		(2,306,549	)

Valuation allowance		3,061,493			2,306,549

Refund received re previous tax year		-			(4,604	)
Provision for income taxes		-			4,604

The significant components of deferred income taxes and assets as at December 31, 2016 are as follows:

	2016 $			2015 $

Net operating losses carried forward		8,806,016			5,792,392

Valuation allowance		(8,806,016	)		(5,792,392	)

Net deferred income tax asset		-			-