v3.26.1
Income Taxes
 6 Months Ended
Sep. 30, 2025
Income Taxes [Abstract]  
Income Taxes

11. Income Taxes

 

Cayman Islands and British Virgin Islands

 

Pursuant to the current rules and regulations, the Cayman Islands and British Virgin Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. Therefore, the Company is not subject to any income tax in the Cayman Islands or British Virgin Islands.

 

Hong Kong

 

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income.

 

On 21 March 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 28 March 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK$2 million of estimated assessable profits of the qualifying group entity will be taxed at 8.25%, and estimated assessable profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.

 

The components of the income tax expense (benefit) are as follows:

 

   For the six months ended September 30, 
   2025   2024 
   USD   USD 
   (unaudited)   (unaudited) 
Current        
Cayman Islands   
-
    
-
 
British Virgin Islands   
-
    
-
 
Hong Kong   16,241    123,722 
           
Deferred          
Cayman Islands   
 
    
-
 
British Virgin Islands   
 
    
-
 
Hong Kong   (10,852)   (432)
Total   5,389    123,290 

The Company measures deferred tax assets and liabilities based on the difference between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax asset and liability are as follows:

   As of September 30, 2025   As of
March 31,
2025		 
   USD   USD 
   (unaudited)   (audited) 
Deferred tax assets        
Right-of-use assets – finance lease   836    984 
Provision for allowance of credit losses   22,845    11,845 
    23,681    12,829 

 

   For the six months ended September 30, 
   2025   2024 
   USD   USD 
   (unaudited)   (unaudited) 
Profit before income taxes   152,169    867,030 
Hong Kong Profits Tax rate   8.25%   16.5%
Income taxes computed at Hong Kong Profits Tax rate   12,554    143,060 
           
Reconciling items:          
Tax effect of income that is not taxable*   (1,769)   (252)
Tax effect of expense that is not deductible@   61    1,636 
Effect of two-tier tax rate   (5,457)   (21,154)
Statutory tax deduction#   
-
    
-
 
Income tax expense   5,389    123,290 

 

* Income that is not taxable mainly consisted of the government subsidies which are non-taxable under Hong Kong income tax law.

 

@ Expense that is not deductible mainly consisted of donations made to the organization which is not tax-exempt charities under section 88 of Hong Kong income tax law.

 

# It represents a reduction granted by the Hong Kong SAR Government of 100% of the tax payable subject to a maximum reduction of HK$1,500 for each business.