v3.25.2
Income Taxes
3 Months Ended
May 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

 

PRC

 

The Company’s subsidiaries incorporated in the PRC are subject to a profits tax rate of 25% for income generated and operation in the country.

 

The full realization of the tax benefit associated with the carry forward losses depends predominantly upon the Company’s ability to generate taxable income during the carry forward period.

 

Income tax expense (benefits)

 

 

   May 31, 2025   May 31, 2024 
    $    $ 
Loss before tax   (405,324)   (1,204,610)
Tax credit calculated at statutory tax rate   (101,331)   (301,153)
Effect of different tax rates   4,267    1,193 
Deferred tax asset not recognized during the year   100,611    299,974 
Total income tax expense   3,547    14 

 

As of May 31, 2025 and February 28, 2025, the significant components of the deferred tax assets and deferred tax liabilities are summarized below:

 

 

   May 31, 2025   February 28, 2025 
    $    $ 
Deferred tax assets:          
Net operating loss carrying forward   3,661,455    3,954,265 
Allowance on doubtful accounts   120,214    194,117 
Deferred tax assets, gross   3,781,669    4,148,382 
Less: valuation allowance   (3,781,669)   (4,148,382)
Deferred tax assets, net   -    - 

 

The Company accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profits will be available against which the Company can utilize the benefits.

 

Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets.