v3.25.1
Income Tax Expense
 12 Months Ended
Dec. 31, 2024
Income Tax Expense [Abstract]  
INCOME TAX EXPENSE
9.INCOME TAX EXPENSE

 

Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. Overseas tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax:

 

   For the year ended December 31, 
   2024   2023   2022 
   US$   US$   US$ 
Hong Kong profits tax:            
- Charge for the year   771    4,261    12,926 
- Overprovision in prior year   
—
    (800)   
—
 
The People’s Republic of China withholding tax:               
- Charge for the year   868    993    641 
Other jurisdictions:               
- Charge for the year   
—
    
—
    80 
Deferred tax   
—
    (140)   (242)
    1,639    4,314    13,405 

 

Under the two-tiered profits tax rates regime of Hong Kong Profits Tax, 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%. For the year ended December 31, 2022, 2023 and 2024, the Hong Kong Profits Tax of the qualifying group entity 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.

A income tax expense can be reconciled to profit before taxation as follows:

 

    For the year ended December 31,  
    2024     2023     2022  
    US$     US$     US$  
Profit before tax     55,217       157,697       173,871  
                         
Tax at statutory tax rate of domestic income tax rate     13,804       26,020       28,689  
Tax effect of foreign tax jurisdictions     (40 )     108       34  
Tax effect of two-tiered profit tax rate     -         (21 )     (21 )
Tax effect of non-taxable income      (24,150 )     (31,954 )     (15,604 )
Tax effect of distribution to perpetual securities holders that are deductible for tax purpose     (1,076 )     (1,412 )     (2,591 )
Tax effect of non-deductible expenses     9,776       4,743       2,265  
Tax effect of unrecognized temporary difference     -        —       (1 )
Overprovision in prior year     -        (800 )     —  
Tax effect of tax loss not recognized     2,515       6,637       —  
Utilization of tax losses previously not recognized     (58 )     —       (7 )
Withholding tax on the dividend income     868       993       641  
Income tax expense     1,639       4,314       13,405  

 

Deferred tax assets have not been recognized in respect of these losses as it is not considered probable that taxable profits will be available against which such tax losses can be utilized.