v3.25.2
TAXATION
 6 Months Ended
Jun. 30, 2025
TAXATION  
TAXATION

23. TAXATION

 

The provision (benefit) for income taxes for the three and six months ended June 30, 2025 and 2024 consisted of the following:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Current provision

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

For the period

 

$76,365

 

 

$41,624

 

 

 

130,098

 

 

 

80,732

 

Prior periods

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total current provision

 

 

76,365

 

 

 

41,624

 

 

 

130,098

 

 

 

80,732

 

Deferred provision

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total provision

 

$76,365

 

 

$41,624

 

 

 

130,098

 

 

 

80,732

 

The provision for current taxation represents minimum / final tax under the provisions of the Income Tax Ordinance, 2001 (ITO), as applicable in Pakistan.

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Current provision

 

 

 

 

 

 

 

 

 

 

Federal

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

State

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Foreign

 

 

76,365

 

 

 

41,624

 

 

 

130,098

 

 

 

80,732

 

Total current provision

 

 

76,365

 

 

 

41,624

 

 

 

130,098

 

 

 

80,732

 

Deferred

 

$-

 

 

 

-

 

 

 

-

 

 

 

-

 

State

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Foreign

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total provision

 

 

76,365

 

 

 

41,624

 

 

 

130,098

 

 

 

80,732

 

 

The provision for current taxation represents minimum / final tax under the provisions of the Income Tax Ordinance, 2001 (ITO), as applicable in Pakistan.

 

Since the Company does not have taxable income and accounting income for the three and six month periods ended June 30, 2025 and June 30, 2024, therefore minimum tax on turnover has been levied under the Income Tax Ordinance, 2001, as applicable in Pakistan and details are shown below:

 

The components of the Company’s deferred income taxes as of June 30, 2025 and December 31, 2024 are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Asset for deferred taxation comprising temporary differences related to:

 

Unaudited

 

 

 

 

 

 

 

 

 

 

Unused tax losses

 

$15,104,949

 

 

$15,389,335

 

Provision for doubtful debts

 

 

3,228,610

 

 

 

3,289,396

 

Post employment benefits

 

 

192,443

 

 

 

196,066

 

Provision for stores and spares & stock-in-trade

 

 

4,129

 

 

 

4,207

 

Provision for credit losses of advances and other receivables

 

 

276,934

 

 

 

282,148

 

Valuation allowance

 

 

(3,937,762)

 

 

(4,011,889)

 

 

 

14,869,303

 

 

 

15,149,252

 

Liability for deferred taxation comprising temporary differences on other liabilities

 

 

(6,557,413)

 

 

(6,680,872)

Deferred tax asset

 

$8,311,890

 

 

$8,468,381

 

 

Deferred tax asset on tax losses available for carry forward has been recognized to the extent that the realization of related tax benefit is probable from reversal of existing taxable temporary differences and future taxable profit. These unused tax losses mainly represent allowable depreciation expenses for an indefinite period. However, there are no such tax benefits which remain unrecognized into the financial statements and tax related contingencies have been adequately disclosed in note 18 of these financial statements. Management’s assertions of future taxable profits are primarily supported by projections in the Company’s business plan, which focuses on the expansion and execution of Fiber-to-the-Home (FTTH) services and other IT-based solutions. The Company believes that these initiatives are expected to generate sufficient taxable income in the foreseeable future, thereby enabling the company to utilize the carried-forward tax losses.

 

A significant portion of the deferred tax asset is attributable to unabsorbed depreciation, which continues to be available for set-off against future taxable income under the Income Tax Ordinance, 2001 (as applicable in Pakistan). In accordance with this ordinance, such unabsorbed depreciation can be carried forward indefinitely until it is fully utilized.