DEFERRED TAX LIABILITIES

12 Months Ended

Mar. 31, 2025

12. DEFERRED TAX LIABILITIES

	As of March 31,
	2025		2024
	US$’000		US$’000
Deferred tax liabilities		1,256		1,273

The following are the major deferred tax assets and liabilities recognized by the Company:

	Property, plant and equipment			Withholding tax on undistributed profits ⁽¹⁾		Total
	US$’000			US$’000		US$’000
As of March 31, 2023		1,316			-		1,316
Recognized in statements of income		(43	)		-		(43	)
As of March 31, 2024		1,273			-		1,273
Recognized in statements of income		(17	)		-		(17	)
As of March 31, 2025		1,256			-		1,256

(1)

On February 22, 2008, the State Administration of Taxation of China issued Circular [2008] No. 001, which states that dividends distributed after January 1, 2008, and derived from profits accumulated prior to January 1, 2008, will be exempt from withholding tax when distributed to foreign non-resident enterprise investors. As a result, there should be no deferred tax liabilities recognized for the undistributed profits accumulated by the Company’s PRC subsidiaries through December 31, 2007.