v3.25.2
INCOME TAX
 6 Months Ended
Jun. 30, 2025
INCOME TAX  
INCOME TAX

8. INCOME TAX

 

The loss before income taxes of the Company for the period ended June 30, 2025 was comprised of the following:

 

 

 

For the period ended June 30, 2025

(Unaudited)

 

Tax jurisdictions from:

 

 

 

- Local

 

$(9,518 )

- Foreign, representing:

 

 

 

 

Marshall Islands (non-taxable jurisdiction)

 

 

(1,035 )

Hong Kong

 

 

(20,601 )

Loss before income taxes

 

$(31,154 )

 

Provision for income taxes consisted of the following:

 

 

 

For the period ended June 30, 2025

(Unaudited)

 

Current:

 

 

 

- Local

 

$-

 

- Foreign

 

$-

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

- Local

 

$-

 

- Foreign

 

$-

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

- Local

 

$-

 

- Foreign

 

$-

 

 

 

 

 

 

Income tax payable:

 

 

 

 

- Local

 

$-

 

- Foreign

 

$-

 

 

 

 

 

 

Income tax assets:

 

 

 

 

- Local

 

$-

 

- Foreign

 

$-

 

The Company is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as the Company had no United States taxable income for the period ended June 30, 2025.

 

Scientist Home Holding was incorporated in the Republic of Marshall Islands and, under the laws of Marshall Islands, is not subject to income taxes.

 

The Company operates in Hong Kong and files tax returns in the Hong Kong jurisdiction. Scientist Home HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a tax rate of 16.5%. (the first HKD 2 million (equivalent to USD258,000) of profits earned by the company will be taxed at half the current tax rate (i.e., 8.25%) whilst the remaining profits will continue to be taxed at the existing 16.5% tax rate.)

 

No deferred taxes were recognized for the period ended June 30, 2025.

 

Effective and Statutory Rate Reconciliation

 

The following table summarizes a reconciliation of the Company’s statutory income tax rate to the Company's effective tax rate as a percentage of income from continuing operations before taxes:

 

 

 

For the period ended June 30, 2025

(Unaudited)

 

Statutory federal income tax rate

 

 

21%

Effect of foreign tax rate difference

 

 

(9.13 )%

Valuation allowance

 

 

(11.87 )%

Effective tax rate

 

-

% 

 

 

 

For the period ended June 30, 2025

(Unaudited)

 

Statutory federal income tax rate

 

 

21%

Computed expected expenses

 

 

(6,542 )

Effect of foreign tax rate difference

 

 

2,844

 

Valuation allowance

 

 

3,698

 

Income tax expense

 

 

-

 

 

For the period ended June 30, 2025, the cash paid for income taxes of the Company was nil.