v3.26.1
Provision For Income Tax
 12 Months Ended
Mar. 31, 2026
Provision For Income Tax [Abstract]  
PROVISION FOR INCOME TAX

NOTE 15 — PROVISION FOR INCOME TAX

 

Enterprise income tax

 

British Virgin Islands

 

Under the current laws of the British Virgin Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed.

 

HKSAR

 

On March 21, 2018, the HK SAR Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 21, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.

 

Accordingly, the HK SAR profits tax is calculated at 8.25% on the first HK$2 million of the estimated assessable profits and at 16.5% on the estimated assessable profits above HK$2 million.

 

Singapore

 

Tax on corporate income is imposed at a flat rate of 17%. A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available.

 

The current and deferred portions of the income tax expense included in the consolidated statements of operations and comprehensive (loss) income as determined in accordance with ASC 740 are as follows:

 

    For the year ended
March 31,		  
    2026     2025     2024  
Current income tax   $ 16,772     $ —     $ 128,932  
Deferred income tax     (11,846 )     (174,620 )     —  
Provision for (Benefit from) income taxes   $ 4,926     $ (174,620 )   $ 128,932  

 

The following tables provide the reconciliation of the difference between the statutory and effective tax expenses following as of March 31, 2026, 2025 and 2024:  

 

    For the year ended
March 31,		  
    2026     2025     2024  
(Loss) Income before income tax   $ (10,310,278 )   $ (1,635,736 )   $ 912,370  
Tax expenses at the British Virgin Islands statutory tax rate     —       —       —  
Tax expenses at Singapore Profits Tax rate     —       —       —  
Hong Kong Profits Tax rate     16.50 %     16.50 %     16.50 %
Income taxes computed at Hong Kong Profits Tax rate     (1,701,196 )     (269,896 )     150,541  
Effect of different tax rates available to different jurisdictions     1,402,209       —       —  
Tax allowance at the statutory tax rates     (43,217 )     (1,362 )     (1,276 )
Tax effect on non-assessable income     (55 )     (18 )     (18 )
Tax effect on non-deductible expenditure     4,184       75,483       772  
Under-provision in prior years     11,607       —       —  
Tax effect of two-tier tax rate     —       21,173       (21,087 )
Valuation allowance     331,394       —       —  
Provision for (Benefit from) income taxes   $ 4,926     $ (174,620 )   $ 128,932  

 

The following table reconciles the statutory tax rate to the Company’s effective tax rate for the years ended March 31, 2026, 2025 and 2024: 

 

    For the year ended
March 31,		  
    2026     2025     2024  
British Virgin Islands statutory tax rate     — %     — %     — %
Hong Kong Profits tax rate     16.5 %     16.5 %     16.5 %
Different tax rates available to different jurisdictions     (13.6 )%     — %     — %
Tax allowance at the statutory tax rates     0.4 %     0.1 %     (0.1 )%
Non-assessable income     — %     — %     — %
Non-deductible expenditure     — %     (4.6 )%     — %
Under-provision in prior years     (0.1 )%     — %     — %
Two-tier tax rate     — %     (1.3 )%     (2.3 )%
Valuation allowance     (3.2 )%     — %     — %
Effective tax rate     — %     10.7 %     14.1 %

 

An analysis of the Company’s deferred tax assets as of March 31, 2026 and 2025 was as follows: 

 

    As of  March 31,  
    2026     2025  
Deferred tax assets:            
Net operating loss carried forward     515,228       174,915  
Less: Valuation allowance     (329,863 )     —  
Deferred tax assets - net   $ 185,365     $ 174,915  

 

The movement of deferred tax assets is as follows:  

 

    As of March 31,  
    2026     2025  
Balance at beginning of the year   $ 174,915     $ —  
Additions     343,240       174,620  
Utilization     —       —  
Valuation allowance     (331,394 )     —  
Exchange adjustment     (1,396 )     295  
Balance at end of the year   $ 185,365     $ 174,915  

 

Deferred tax assets

 

    Accumulated losses carry forward     Others     Total  
    USD     USD     USD  
As of April 1, 2024   $ —     $ —     $ —  
Credit to the statement of operations     174,620       —       174,620  
Exchange adjustment     295       —       295  
As of March 31, 2025 and April 1, 2025     174,915       —       174,915  
Credit to the statement of operations     331,394       11,846       343,240  
Less: valuation allowance     (331,394 )     —       (331,394 )
Exchange adjustment     (1,342 )     (54 )     (1,396 )
Balance at end of the year   $ 173,573     $ 11,792     $ 185,365  

 

In assessing the realizability of deferred tax assets, management consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making the assessment. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences.