v3.25.4
Income Tax
 6 Months Ended 12 Months Ended
Sep. 30, 2025
Mar. 31, 2025
Income Tax [Abstract]    
Income Tax

10. Income Tax

 

(a) Income Tax

 

British Virgin Islands

 

Under the current and applicable laws of BVI, the Company is not subject to tax on income or capital gains.

 

Hong Kong

 

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. Hong Kong entities which are not qualified or selected under the two-tier tax rate are chargeable at the tax rate of 16.5% on any assessable profits.

 

Taiwan

 

In accordance with the relevant tax laws and regulations of Taiwan, a company registered in Taiwan is subject to a corporate income tax rate of 20%.

 

For the six months ended September 30, 2025 and 2024, our subsidiaries did not select the two-tier tax rate for income tax provision and a tax rate of 16.5% is applicable on all assessable profits.

The components of the income tax provision are as follows:

 

   For the six months ended September 30, 
   2024   2025   2025 
   HK$   HK$   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Current income tax   493,848    485,578    62,406 
Deferred income tax   (2,339)   (3,367)   (433)

 

Reconciliation between the provision for income tax computed by applying the Hong Kong Profits Tax rate of 16.5% to income before income tax and the actual provision of income tax is as follows:

 

   For the six months ended September 30, 
   2024   2025   2025 
   HK$   HK$   US$ 
   (Unaudited)   (Unaudited)   (Unaudited) 
Profit before income tax   1,297,000    (10,874,995)   
(1,397654
)
Hong Kong Profits Tax rate   16.5%   16.5%   16.5%
Income tax computed at Hong Kong Profits Tax rate   214,005    (1,794,375)   (230,612)
                
Reconciling items:               
Tax effect of income that is not taxable   (1,216)   (3,919)   (504)
Tax effect of expenses that is not deductible   6,587    15,221    1,956 
Tax effect of different tax rates in other jurisdiction   277,944    1,718,256    220,830 
Over provision for pervious year   (2,811)   (5,248)   (674)
Tax concession   (3,000)   
—
    
—
 
Valuation allowance   
—
    552,276    70,978 
Income tax   491,509    482,211    61,974 

(b) Deferred Tax Assets and Liabilities

 

The Company measures deferred tax liabilities based on the difference between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax assets and liabilities are as follows:

 

   March 31,
2025		   September 30,
2025		   September 30,
2025		 
   HK$   HK$   US$ 
       (Unaudited)   (Unaudited) 
Deferred tax assets            
Impairment loss on accounts receivable   54,456    
—
    
—
 
Impairment loss on prepayments   1,747,994    
—
    
—
 
Net operation loss carrying forward   93,828    552,276    70,978 
Total deferred tax assets, net   1,896,278    
—
    
—
 
Less: valuation allowance   (1,896,278)   (552,276)   (70,978)
Deferred tax assets, net   
—
   
—
    
—
 

 

   March 31,
2025		   September 30,
2025		   September 30,
2025		 
   HK$   HK$   US$ 
       (Unaudited)   (Unaudited) 
Deferred tax liabilities            
Depreciation of property and equipment   (23,684)   (20,317)   (2,611)

 

(c)Uncertainty of Tax Position

 

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of September 30, 2025 and March 31, 2025, the Company did not have any recognized potential tax benefits nor potential underpaid income tax from any interests and penalties and is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated. The Company believes there are no uncertain tax positions as of September 30, 2025 and March 31, 2025, and did not expect its assessment regarding unrecognized tax positions will materially change over the next 12 months.

10. Income Tax

 

(a)Income Tax

 

British Virgin Islands

 

Under the current and applicable laws of BVI, the Company is not subject to tax on income or capital gains.

 

Hong Kong

 

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. Hong Kong entities which are not qualified or selected under the two-tier tax rate are chargeable at the tax rate of 16.5% on any assessable profits.

 

Taiwan

 

In accordance with the relevant tax laws and regulations of Taiwan, a company registered in Taiwan is subject to a corporate income tax rate of 20%.

 

For the years ended March 31, 2025 and 2024, CTRL Media did not select the two-tier tax rate for income tax provision and a tax rate of 16.5% is applicable on all assessable profits.

 

The components of the income tax provision are as follows:

 

   For the year ended March 31, 
   2024   2025   2025 
   HK$   HK$   US$ 
Current income tax   705,839    262,812    33,781 
Deferred income tax   (6,589)   (9,078)   (1,167)
    699,250    253,734    32,614 

Reconciliation between the provision for income tax computed by applying the Hong Kong Profits Tax rate of 16.5% to income before income tax and the actual provision of income tax is as follows:

 

   For the year ended March 31, 
   2024   2025   2025 
   HK$   HK$   US$ 
Profit before income tax   2,598,909    (26,582,692)   (3,416,844)
Hong Kong Profits Tax rate   16.5%   16.5%   16.5%
Income tax computed at Hong Kong Profits Tax rate   428,820    (4,386,145)   (563,779)
                
Reconciling items:               
Tax effect of income that is not taxable   815,476    (3,999)   (514)
Tax effect of expenses that is not deductible   24,193    57,014    7,328 
Tax effect of different tax rates in other jurisdiction   (495,059)   2,832,350    364,060 
Over provision for pervious year   (71,241)   (138,766)   (17,836)
Tax concession   (3,000)   (3,000)   (386)
Valuation allowance   
—
    1,896,278    243,741 
Others   61    2    
—
 
Income tax   699,250    253,734    32,614 

 

(b)Deferred Tax Assets and Liabilities

 

The Company measures deferred tax liabilities based on the difference between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax assets and liabilities are as follows:

 

   For the years ended March 31, 
   2024   2025   2025 
   HK$   HK$   US$ 
Deferred tax assets            
Impairment loss on accounts receivable        54,456    7,000 
Impairment loss on prepayments        1,747,994    224,681 
Net operation loss carrying forward   
—
    93,828    11,982 
Total deferred tax assets, net   
—
    1,896,278    243,741 
Less: valuation allowance   
—
    (1,896,278)   (243,741)
Deferred tax assets, net   
—
    
—
    
—
 

 

   For the years ended March 31, 
   2024   2025   2025 
   HK$   HK$   US$ 
Deferred tax liabilities               
Depreciation of property and equipment   (32,762)   (23,684)   (3,044)

 

(c)Uncertainty of Tax Position

 

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2025 and 2024, the Company did not have any recognized potential tax benefits nor potential underpaid income tax from any interests and penalties and is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated. The Company believes there are no uncertain tax positions as at March 31, 2025 and 2024, and did not expect its assessment regarding unrecognized tax positions will materially change over the next 12 months.