v3.25.2
Income tax
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Income tax

17 Income tax

 

The Company’s loss before income tax consists of:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Malaysia   1,126,832    2,042,746 
Indonesia   (723,350)   (786,490)
Hong Kong   (38,651,082)   (15,141,598)
Others   (859)   (8,963)
Loss before income tax   (38,248,459)   (13,894,305)

 

The Company is incorporated in Cayman Islands and is not subject to corporate income tax under its relevant regulations.

 

For the Company’s subsidiaries incorporated in Hong Kong, they are subject to a corporate tax rate of 16.5% on the assessable profits arising from Hong Kong.

 

For the Company’s subsidiaries incorporated in Malaysia, they are subject to corporate tax rate on 24% on the assessable profits arising from Malaysia.

 

For the Company’s subsidiaries incorporated in Indonesia, they are subject to a corporate tax rate of 22% on the assessable profits arising from Indonesia.

 

For the Company’s subsidiary incorporated in Singapore, it is subject to a corporate tax rate of 17% on the assessable profits arising from Singapore. No provision for Singapore profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and 2023.

 

For the Company’s subsidiary incorporated in United Kingdom, it is subject to a corporate tax rate of 19% on the assessable profits arising from United Kingdom. No provision for United Kingdom profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and 2023.

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

17Income tax (Continued)

 

Income tax expense consists of:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Income tax expense   534,661    797,147 
Deferred income tax benefit   43,642   (273,666)
Total income tax expense   578,303    523,481 

 

A reconciliation of the income tax expense to the amount computed by applying the current statutory tax rate to the income before income tax in the consolidated statements of operations and comprehensive loss is as follows:

 

   2024   2023 
   Years ended December 31, 
   2024   2023 
   US$   US$ 
         
Income before income tax   (28,748,459)   (13,894,305)
Tax calculated at Hong Kong profits tax rate   (4,743,494)   (2,292,560)
Effect of different tax rates applicable to different jurisdictions   6,683,940    1,637,665 
Income not subject to tax   (8,328,873)   (48,307)
Non-deductible expenses   5,705,763    132,796 
Change in valuation allowance   1,041,756    846,827 
Underprovision of current tax in the previous financial year   31,902    125,217 
Tax effect on deductible temporary differences   7,946    7,918 
Others   179,363    113,925 
Income tax   578,303    523,481 

 

The Company’s deferred tax assets and liabilities as of December 31, 2024 and 2023 are attributable to the following:

 

   2024   2023 
   December 31, 
   2024   2023 
   US$   US$ 
Deferred tax assets          
Tax losses carried forward   8,193,135    8,266,115 
Equipment   (82,885)   (65,050)
Accrued expenses   419,001    296,576 
Others   82,657    54,560 
Total deferred tax assets   8,611,908    8,552,201 
Valuation allowance   (8,269,086)   (7,887,313)
Total deferred tax assets   342,822    664,888 
           
Deferred tax liabilities          
Fixed assets        

-

 
Intangible assets   (876,875)   (1,184,987)
Others   (37)   (61,773)
Total deferred tax liabilities   (876,912)   (1,246,760)
           
Net deferred tax liabilities   (534,090)   (581,872)

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

17Income tax (Continued)

 

As of December 31, 2024 and 2023, management has recorded a valuation allowance on certain deferred tax assets where management believes that after considering all of the available evidence, it is more likely than not that some portion or all will not be realized in the foreseeable future. The ultimate realization of deferred tax assets depends on the generation of future taxable income in which those temporary differences and carry forwards become deductible.

 

As of December 31, 2024 and 2023, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Hong Kong is US$66,424 and US$47,778,609 as of December 31, 2024 and 2023, respectively, which can be carried forward indefinitely.

 

As of December 31, 2024 and 2023, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Singapore is US$73,524 and US$94,611 as of December 31, 2024 and 2023, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiary incorporated in United Kingdom is US$Nil and US$517,015 as of December 31, 2024 and 2023, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiaries incorporated in Indonesia is US$2,099,326 and US$2,349,921 as of December 31, 2024 and 2023, respectively, which will expire, if unused, in the year ending December 31, 2024.

 

The tax loss in the subsidiaries incorporated in Malaysia is US$Nil and US$8,439 as of December 31, 2024 and 2023, respectively, which will expire, if unused, in the year ending December 31, 2031.

 

  
Seamless Group Inc [Member]    
Income tax  

17 Income tax

 

The Company’s loss before income tax consists of:

Schedule of income before income tax

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Malaysia   2,042,746    1,606,867 
Indonesia   (786,490)   1,609,362 
Hong Kong   (15,141,598)   (18,818,064)
Others   (8,963)   (10,096)
Loss before income tax   (13,894,305)   (15,611,931)

 

The Company is incorporated in Cayman Islands and is not subject to corporate income tax under its relevant regulations.

 

For the Company’s subsidiaries incorporated in Hong Kong, they are subject to a corporate tax rate of 16.5% on the assessable profits arising from Hong Kong.

 

For the Company’s subsidiaries incorporated in Malaysia, they are subject to corporate tax rate on 24% on the assessable profits arising from Malaysia.

 

For the Company’s subsidiaries incorporated in Indonesia, they are subject to a corporate tax rate of 22% on the assessable profits arising from Indonesia.

 

For the Company’s subsidiary incorporated in Singapore, it is subject to a corporate tax rate of 17% on the assessable profits arising from Singapore. No provision for Singapore profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022.

 

For the Company’s subsidiary incorporated in United Kingdom, it is subject to a corporate tax rate of 19% on the assessable profits arising from United Kingdom. No provision for United Kingdom profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2023 and 2022.

 

 

SEAMLESS GROUP INC. AND SUBSIDIARIES

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

17 Income tax (Continued)

 

Income tax expense consists of:

Schedule of components of income tax expense

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Income tax expense   797,147    507,740 
Deferred income tax benefit   (273,666)   (393,958)
Income tax expense benefit   523,481    113,782 

 

A reconciliation of the income tax expense to the amount computed by applying the current statutory tax rate to the income before income tax in the consolidated statements of operations and comprehensive loss is as follows:

Schedule of effective income tax rate reconciliation

 

           
   Years ended December 31, 
   2023   2022 
   US$   US$ 
         
Income before income tax   (13,894,305)   (15,611,931)
Tax calculated at Hong Kong profits tax rate   (2,292,560)   (2,576,217)
Effect of different tax rates applicable to different jurisdictions   1,637,665    2,244,573 
Income not subject to tax   (48,307)   (567,161)
Non-deductible expenses   132,796    658,533 
Change in valuation allowance   846,827    245,220 
Underprovision of current tax in the previous financial year   125,217    48,182 
Tax effect on deductible temporary differences   7,918    46,624 
Others   113,925    14,028 
Income tax   523,481    113,782 

 

The Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 are attributable to the following:

Schedule of deferred tax assets and liabilities

 

           
   December 31, 
   2023   2022 
   US$   US$ 
Deferred tax assets          
Tax losses carried forward   8,266,115    7,526,178 
Equipment   (65,050)   (90,113)
Accrued expenses   296,576    354,988 
Others   54,560    39,290 
Deferred tax gross   8,552,201    7,830,343 
Valuation allowance   (7,887,313)   (7,061,726)
Total deferred tax assets   664,888    768,617 
           
Deferred tax liabilities          
Fixed assets   -    - 
Intangible assets   (1,184,987)   (1,554,721)
Others   (61,773)   (61,622)
Total deferred tax liabilities   (1,246,760)   (1,616,343)
           
Net deferred tax liabilities   (581,872)   (847,727)

 

 

SEAMLESS GROUP INC. AND SUBSIDIARIES

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

17 Income tax (Continued)

 

As of December 31, 2023 and 2022, management has recorded a valuation allowance on certain deferred tax assets where management believes that after considering all of the available evidence, it is more likely than not that some portion or all will not be realized in the foreseeable future. The ultimate realization of deferred tax assets depends on the generation of future taxable income in which those temporary differences and carry forwards become deductible.

 

As of December 31, 2023 and 2022, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Hong Kong is US$46,778,609 and US$41,238,871 as of December 31, 2023 and 2022, respectively, which can be carried forward indefinitely.

 

As of December 31, 2023 and 2022, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Singapore is US$94,611 and US$385,862 as of December 31, 2023 and 2022, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiary incorporated in United Kingdom is US$517,015 and US$566,925 as of December 31, 2023 and 2022, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiaries incorporated in Indonesia is US$2,349,921 and US$2,605,545 as of December 31, 2023 and 2022, respectively, which will expire, if unused, in the year ending December 31, 2023.

 

The tax loss in the subsidiaries incorporated in Malaysia is US$8,439 and US$444,983 as of December 31, 2023 and 2022, respectively, which will expire, if unused, in the year ending December 31, 2031.