| Taxes |
NOTE 9 — Taxes
| (a) | Corporate Income Taxes (“CIT”) |
Neveda
Nevada does not have a corporate income
tax.
Australia
Under Australian tax law, the applicable
corporate income tax rate is 30%, or 25% if the company qualifies as a base rate entity (with annual turnover less than AUD 50 million
and 80% or less of its assessable income from passive sources). In addition, there is no time limit for the carryforward of tax losses,
allowing them to be carried forward indefinitely. However, when a company applies carried-forward losses, it must pass either the Continuity
of Ownership Test (COT) or the Same Business Test (SBT) to ensure that the loss deduction complies with the regulations.
Taiwan
Under Taiwan tax law, the applicable
corporate income tax rate is fixed at 20% effective from January 1, 2019. Operating losses may be carried forward to the tenth succeeding
tax year when a “blue return” is filed or when the return is certified by an independent certified public accountant. No carry-back
of losses is permitted.
| i) | The components of the income tax provision are as follows: |
| | |
Three months ended
June 30,
2025 | | |
Three months ended
June 30,
2024 | |
| Current income tax expenses | |
$ | - | | |
| 2,383 | |
| Total provision for income taxes | |
| - | | |
| 2,383 | |
| | |
Six months ended
June 30,
2025 | | |
Six months ended
June 30,
2024 | |
| Current income tax expenses | |
$ | - | | |
| 5,545 | |
| Total provision for income taxes | |
| - | | |
| 5,545 | |
| ii) | The following table reconciles Australia statutory rates
to the Group’s income tax expenses: |
| | |
Three months ended
June 30,
2025 | | |
Three months ended
June 30,
2024 | |
| (Loss)/income before tax | |
$ | (9,920 | ) | |
| 2,114 | |
| Australia statutory income tax rate | |
| 25 | % | |
| 25 | % |
| Provision for income taxes | |
| (2,480 | ) | |
| 529 | |
| Non-taxable income taxes | |
| 2,805 | | |
| (168 | ) |
| Non-deductible expenses | |
| 4,315 | | |
| 2,022 | |
| Change in valuation allowance | |
| 615 | | |
| (874 | ) |
| Others | |
| (5,255 | ) | |
| 874 | |
| Income tax expenses | |
$ | - | | |
| 2,383 | |
| | |
Six months ended
June 30, 2025 | | |
Six months ended
June 30,
2024 | |
| (Loss)/income before tax | |
$ | (22,722 | ) | |
| 8,662 | |
| Australia statutory income tax rate | |
| 25 | % | |
| 25 | % |
| Provision for income taxes | |
| (5,681 | ) | |
| 2,165 | |
| Non-taxable income taxes | |
| (6,402 | ) | |
| (119 | ) |
| Non-deductible expenses | |
| 4,315 | | |
| 3,499 | |
| Change in valuation allowance | |
| 21,392 | | |
| (1,832 | ) |
| Others | |
| (13,624 | ) | |
| 1,832 | |
| Income tax expenses | |
$ | - | | |
| 5,545 | |
| iii) | The following summarizes deferred assets, net and liabilities resulting from differences between financial
accounting basis and tax basis of assets and liabilities: |
The deferred tax assets, net are nil
and nil as of June 30, 2025 and December 31, 2024.
The deferred tax liabilities are nil
and nil as of June 30, 2025 and December 31, 2024.
As of June 30, 2025, the amount of
tax loss carry-forwards of the Group was as following:
| Location | |
June 30,
2025 | |
| Neveda | |
$ | - | |
| Australia | |
| 49,237 | |
| Taiwan | |
| 137,566 | |
| | |
$ | 186,803 | |
Taxes payable consist of the following:
| | |
June 30,
2025 | | |
December 31,
2024 | |
| Income tax payable | |
$ | 14 | | |
| 13 | |
| Value- added tax payable | |
| - | | |
| 2,461 | |
| | |
$ | 14 | | |
| 2,474 | |
|