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INCOME TAX
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE – 10 INCOME TAX

 

For the years ended March 31, 2025 and 2024, the local (“United States of America”) and foreign components of income (loss) before income taxes were comprised of the following:

        
   Years ended March 31, 
   2025   2024 
Tax jurisdiction from:          
- Local  $(129,172)  $(1,148,669)
- Foreign, including          
British Virgin Islands   2,110,959    (254,779)
Hong Kong   (34,419)   (104,021)
           
Income (loss) before income taxes  $1,948,092   $(1,507,469)

 

The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company mainly operates in Hong Kong that is subject to taxes in the jurisdictions in which they operate, as follows:

 

United States of America

 

OneSolution Technology Inc. is registered in the State of Delaware and is subject to tax laws of the United States of America. The U.S. corporate income tax rate is 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued for interest or penalties as they were not material to its results of operations for the periods presented.

 

As of March 31, 2025, the operations in the United States of America incurred $2,030,174 of cumulative net operating losses which can be carried forward indefinitely to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $426,336 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

BVI

 

Under the current BVI law, the Company is not subject to tax on income.

 

Hong Kong

 

The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the years ended March 31, 2025 and 2024 is as follows:

        
   Years ended March 31, 
   2025   2024 
         
Loss before income taxes  $(34,419)  $(104,021)
Statutory income tax rate   16.5%    16.5% 
Income tax expense at statutory rate   (5,679)   (17,163)
Tax effect of non-deductible items   8,212    1,169 
Tax effect of non-taxable items   (139)   (301)
Tax operating loss   (2,394)   16,295 
Income tax expense  $–   $– 

 

As of March 31, 2025, the operations in Hong Kong incurred $11,892 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards under Hong Kong tax regime. the Company has provided for a full valuation allowance against the deferred tax assets of $4,303 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

The following table sets forth the significant components of the deferred tax assets of the Company as of March 31, 2025 and 2024:

        
   As of March 31, 
   2025   2024 
         
Deferred tax assets:          
Net operating loss carryforward, from          
US tax regime  $524,068   $399,210 
Hong Kong tax regime   4,303    313,096 
Less: valuation allowance   (528,371)   (712,306)
Deferred tax assets, net  $–   $– 

 

The Company filed income tax returns in the United States federal tax jurisdiction and the Delaware state tax jurisdiction. Since the Company is in a loss carryforward position, it is generally subject to examination by federal and state tax authority for all tax years in which a loss carryforward is available.