v3.25.4
INCOME TAX
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
North Water Investment Group Holdings Limited [Member]    
Restructuring Cost and Reserve [Line Items]    
INCOME TAX  

13. INCOME TAX

 

British Virgin Islands

 

Under the current laws of the British Virgin Islands, the intermediate holding company is not subject to tax on its income or capital gains.

 

Hong Kong

 

The Group’s subsidiary incorporated in Hong Kong are subject to a profits tax rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000.

 

The following table sets forth current and deferred portion of income tax expenses:

 

SCHEDULE OF INCOME TAX EXPENSE

   2023   2024 
  

For the years ended

December 31,

 
   2023   2024 
   HK$   HK$ 
         
Current tax expense   -    - 
Deferred tax expense   -    - 
Income tax expenses   -    - 

 

The following table provides the reconciliation of the differences between the statutory and effective tax expenses:

 SCHEDULE OF STATUTORY AND EFFECTIVE TAX EXPENSES

   2023   2024 
  

For the years ended

December 31,

 
   2023   2024 
   HK$   HK$ 
         
(Loss) Income before income tax expense   (1,074,799)   3,347,275 
           
Tax at Hong Kong statutory tax rate of 16.5%   (177,341)   552,300 
Tax effect of tax-exempt entity   -    3,743 
Tax effect of non-deductible expenses   222    2,526 
Tax effect of non-taxable income   (120,507)   (62,993)
Tax effect of unrecognized temporary differences   (802)   17,712 

Changes in valuation allowance

   298,428    (513,288)
Statutory and effective tax expenses   -    - 

  

 

NORTH WATER INVESTMENT GROUP HOLDINGS LIMITED AND ITS SUBSIDIARY

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

for the years ended December 31, 2023 and 2024

 

13. INCOME TAX (Continued)

 

The following table sets forth the significant components of the deferred tax assets of the Group:

 

SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS

   2023   2024 
   As of December 31, 
   2023   2024 
   HK$   HK$ 
         
Net operating loss carryforwards   6,616,606    6,103,318 
Less: valuation allowance   (6,616,606)   (6,103,318)
Deferred tax assets   -    - 

 

The Group had HK$40,100,643 and HK$36,989,810 unused tax losses carried forward as of December 31, 2023 and 2024. During the years ended December 31, 2023 and 2024, the Group recognized the valuation allowance of HK$6,616,606 and HK$6,103,318, respectively, against its deferred tax asset. Management determined it was more likely than not that the deferred tax asset will not be realized and recorded a 100% valuation allowance for the years ended December 31, 2023 and 2024.

 

The following table sets forth the movements of valuation allowance of deferred tax assets:

 SCHEDULE OF VALUATION ALLOWANCE OF DEFERRED TAX ASSETS

   2023   2024 
  

For the years ended

December 31,

 
   2023   2024 
   HK$   HK$ 
         
Balance at beginning of the year   6,318,178    6,616,606 
Additions   298,428    - 
Reversals   -    (513,288)
Balance at end of the year   6,616,606    6,103,318 

 
Mango Financial Group Limited [Member]    
Restructuring Cost and Reserve [Line Items]    
INCOME TAX

 

16. INCOME TAX

 

Cayman Islands

 

Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains.

 

British Virgin Islands

 

Under the current laws of the British Virgin Islands, the intermediate holding company is not subject to tax on its income or capital gains.

 

Hong Kong

 

The Group’s subsidiary incorporated in Hong Kong are subject to a profits tax rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000.

 

The following table sets forth current and deferred portion of income tax expenses:

 

    2024    2025 
    For the six months ended June 30, 
    2024    2025 
    HK$    HK$ 
    (Unaudited)    (Unaudited) 
           
Current tax expense   -    - 
Deferred tax expense   -    - 
Income tax expenses   -    - 

 

The following table provides the reconciliation of the differences between the statutory and effective tax expenses:

 

   2024   2025 
   For the six months ended June 30, 
   2024   2025 
   HK$   HK$ 
   (Unaudited)   (Unaudited) 
         
Income before income tax expense   4,507,888    3,892,810 
           
Tax at Hong Kong statutory tax rate of 16.5%   743,802    642,314 
Tax effect of tax-exempt entity   -    19,022 
Tax effect of non-deductible expenses   42    - 
Tax effect of non-taxable income   (34,634)   (14,246)
Tax effect of unrecognized temporary differences   (350)   (7,216)
Changes in valuation allowance   (708,860)   (639,874)
Statutory and effective tax expenses   -    - 

 

 

MANGO FINANCIAL GROUP LIMITED

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025 (UNAUDITED)

 

16. INCOME TAX (Continued)

 

The following table sets forth the significant components of the deferred tax assets of the Group:

 

   2024   2025 
   As of 
   December 31,   June 30, 
   2024   2025 
   HK$   HK$ 
       (Unaudited) 
         
Net operating loss carryforwards   6,103,318    5,463,444 
Less: valuation allowance   (6,103,318)   (5,463,444)
Deferred tax assets   -    - 

 

The Group had HK$36,989,810 and HK$33,111,788 unused tax losses carried forward as of December 31, 2024 and June 30, 2025. During the year ended December 31, 2024, and the six months ended June 30, 2024 and 2025, the Group recognized the valuation allowance of HK$6,103,318, HK$5,907,746 and HK$5,463,444, respectively, against its deferred tax asset. Management determined it was more likely than not that the deferred tax asset will not be realized and recorded a 100% valuation allowance for the year ended December 31, 2024, and the six months ended June 30, 2024 and 2025.

 

The following table sets forth the movements of valuation allowance of deferred tax assets:

 

   2024   2025 
   For the six months ended June 30, 
   2024   2025 
   HK$   HK$ 
   (Unaudited)   (Unaudited) 
         
Balance at beginning of the year   6,616,606    6,103,318 
Reversals   (708,860)   (639,874)
Balance at end of the year   5,907,746    5,463,444