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NOTE 5 - INCOME TAXES
 6 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
NOTE 5 - INCOME TAXES

NOTE 5 - INCOME TAXES

 

For the six months ended March 31, 2025 and 2024, the Company had income tax expense of $70,051 and $472,131, respectively. Effective tax rate was (2.76)% and 1,525.81% for the six months ended March 31, 2025 and 2024, respectively.

 

The provisions for income taxes for the six months ended March 31, 2025 and 2024 are summarized as follows:

 

    For the six months ended March 31,
    2025 2024
Current income tax expense $ - 351,462
Deferred income tax expense   70,051 120,669
Total $ 70,051 472,131

 

Japan

 

The Company conducts its major businesses in Japan and e-Learning and e-Communications Co., Ltd. (collectively, “Japanese Subsidiaries”) are subject to tax in this jurisdiction. As a result of its business activities, Japanese Subsidiaries file tax returns that are subject to examination by the local tax authority.

 

Japanese Subsidiaries are subject to a number of income taxes, which, in aggregate, represent a statutory tax rate approximately as follows:

 

    Company’s assessable profit
For the period ended March 31, 　 Up to JPY 4 million 　 Up to JPY 8 million 　 Over JPY 8 million
2024 　 21.87% 　 23.74% 　 34.34%
2025 　 21.87% 　 23.74% 　 34.34%

 

Hong Kong

 

Force Holdings, a direct wholly owned subsidiary of the Company in Hong Kong, is engaged in investment holding. Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable profit arising in Hong Kong.

 

No provision for the Hong Kong profits tax has been made as Force Holdings has not generated any estimated assessable profits in Hong Kong from its inception.

 

United States

 

Exceed World, Inc., which acts as a holding company on a non-consolidated basis, does not plan to engage any business activities and current or future loss will be fully allowed. For the six months ended March 31, 2025 and 2024, respectively, Exceed World, Inc., as a holding company registered in the state of Delaware, has incurred net loss and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry forward has been fully reserved.