v3.25.2
Taxes
 9 Months Ended
Jun. 30, 2025
Taxes [Abstract]  
TAXES
14.TAXES

 

Income tax

 

The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

 

BVI Islands

 

The Company was incorporated in the British Virgin Islands (BVI). Under the current laws of the BVI, the Company is exempt from income tax and capital gains tax. Furthermore, dividend payments made by the Company are not subject to withholding tax within the BVI Islands.

 

Hong Kong

 

On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2 million will be taxed at 16.5%.

 

PRC Tax 

 

Based on the Circular No. 13 of the State Tax Bureau for 2022, effective from January 1, 2022, for small and micro-profit enterprises, the portion of the annual taxable income not exceeding RMB 1 million will be reduced by 25% and counted as taxable income, the corporate income tax will be paid at a rate of 20%. For the taxable income that exceeds RMB 1 million but does not exceed RMB 3 millions, the amount will be reduced by 25% and counted as taxable income, the corporate income tax will also be paid at a rate of 20%. During the nine months ended June 30, 2025 and 2024, the operating entities within China were rated as small and micro enterprises.

 

A reconciliation of the income tax benefit determined at the statutory income tax rate to the Company’s income taxes is as follows: 

 

  

For The Nine Months Ended
June 30,

 
   2025   2024 
Loss before income taxes  $(1,225,236)  $(1,789,630)
PRC statutory income tax rate   25%   25%
Income tax benefit computed at statutory corporate income tax rate   (306,309)   (447,408)
Reconciling items:          
Non-deductible expenses   191,926    245,146 
Change in valuation allowance   114,383    202,262 
Income tax expenses (benefits)  $
-
   $
-
 

The tax effects of temporary differences that give rise to the deferred tax balances as of June 30, 2025 and September 30, 2024 are as follows:

 

   June 30,   September 30, 
   2025   2024 
Deferred tax asset:        
Bad debt provision  $114,856   $117,361 
Inventory provision   93,983    96,033 
Long-term asset impairment   12,372    12,642 
Accrued liabilities   35,371    36,143 
Tax loss carryforward   1,375,788    1,288,154 
Totals   1,632,370    1,550,333 
Less: Allowance of deferred tax asset  $(1,632,370)  $(1,550,333)
Net amount   
-
    
-
 

 

Taxes payable

 

Taxes payable consisted of the following: 

 

   June 30,   September 30, 
   2025   2024 
Company income tax payable  $1,901,019   $1,942,488 
VAT tax payable   1,376,287    1,407,181 
Individual income tax payable   2,002,577    2,046,261 
Other taxes payable   173,294    177,074 
Totals  $5,453,177   $5,573,004