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

NOTE 9. INCOME TAXES

 

Cayman Islands

 

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company in the Cayman Islands to its shareholders, no Cayman Islands withholding tax will be imposed.

 

Hong Kong

 

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. With effect from the year of assessment of 2018/2019, Hong Kong profit tax rates are 8.25% on assessable profits up to $ 256,082 (HK$2,000,000), and 16.5% on any part of assessable profits over $ 256,082 (HK$2,000,000). No income tax expense was recognized for the year as the Company maintained a full valuation allowance against its deferred tax assets. Accordingly, there was no current income tax expense incurred in Hong Kong due to the valuation allowance.

 

The Company did not recognize a provision for income taxes for the years ended March 31, 2025, 2024 and 2023.

 

The Company measures deferred tax assets and liabilities based on the difference between the audited consolidated financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax asset and liability are as follows as of March 31, 2025 and 2024:

 

Deferred tax assets:  As of March 31,2025   As of March 31,2024 
         
Net operating loss carryforwards  $95,049   $50,792 
Total deferred tax assets   95,049    50,792 
Less: valuation allowance   (95,049)   (50,792)
Deferred tax assets, net  $-   $- 

 

There was no income tax payable as of March 31, 2025 and 2024.

 

As of March 31, 2025, the Company had accumulated net operating loss carryforwards with an indefinite carry-forward period of approximately $1,152,110.

 

The following table reconciles Hong Kong statutory rates to the Company’s effective tax:

 

   2025   2024   2023 
  

For the years ended
March 31,

 
   2025   2024   2023 
Profit (loss) before income taxes  $(714,680)  $(93,197)  $174,268 
Hong Kong Profits Tax rate   8.25%   8.25%   16.50%
Income taxes computed at Hong Kong Profits Tax rate   (58,961)   (7,689)   28,754 
Reconciling items:               
Tax effect of income that is not taxable*   -    -    (2,021)
Change in valuation allowance   58,961    7,689    (5,688)
Effect of two-tier tax rate   -    -    (21,046)
Income tax expense  $-   $-   $- 

 

*Income that is not taxable mainly consisted of the government subsidies which are non-taxable under Hong Kong income tax law.

 

 

Uncertain tax positions

 

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2025 and 2024, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income taxes for the years ended March 31, 2025, 2024 and 2023. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2025.