v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
INCOME TAXES

Note 13 — INCOME TAXES

 

Income tax

 

Cayman Islands

 

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under current Cayman Islands law. In addition, upon payments of dividends by the Company entities to their shareholders, no Cayman Islands withholding tax will be imposed. Accordingly, the Company does not accrue for taxes.

 

British Virgin Islands (“BVI”)

 

Under the current laws of the BVI, the Company’s subsidiary incorporated in BVI is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the BVI company to its respective shareholders, no BVI withholding tax will be imposed.

 

Singapore

 

The Company’s main operating subsidiary is incorporated in Singapore and is subject to income taxes on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant tax laws and regulations of Singapore. The applicable tax rate is 17% in Singapore, with 75% of the first S$10,000 taxable income and 50% of the next S$190,000 taxable income exempted from income tax.

The following table reconciles Singapore statutory rates to the Company’s effective tax rate:

 

   For the Years Ended December 31, 
   2023   2024   2025   2025 
   S$   S$   S$   $ 
Income tax expenses                
Current income tax expenses   
—
    20,597    20,241    15,741 
Deferred income tax expenses (benefit)   478,009    (186,547)   (140,372)   (109,163)
Income tax expenses (benefit)   478,009    (165,950)   (120,131)   (93,422)

 

A reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax is as follows:

 

   For the Years Ended December 31, 
   2023   2023   2024    2024   2025   2025                2025 
   S$   %   S$   %   S$   $   % 
Income (loss) before tax   2,868,175    100.0    (1,197,088)   100.0    (2,473,133)   (1,923,270)   100.0 
Singapore statutory income tax rate   17%        17%        17%   17%     
Income tax expenses (benefit) computed at Singapore statutory rate   487,590    17.0    (203,505)   17.0    (420,433)   (326,956)   17.0 
Domestic tax effects                                   
Non-deductible expenses   7,530    0.3    5,916    (0.5)   12,827    9,975    (0.5)
Tax exemption and rebates   
—
    
—
    
—
    
——
    
—
    
—
    
—
 
True-up of prior tax   
—
    
—
    (34,022)   2.8    (33,666)   (26,181)   1.4 
Foreign tax effects                                   
Statutory tax rate difference between Cayman and Singapore   
—
    
—
    65,661    (5.4)   321,141    249,740    (13.0)_
Others   (17,111)   (0.6)   
—
    
—
    
—
    
—
    
—
 
Total tax expenses (benefit)   478,009    16.7    (165,950)   13.9    (120,131)   (93,422)   4.9 

 

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 December 31, 
   2024   2025   2025 
   S$   S$   $ 
Deferred tax assets            
Allowance for credit losses   10,369    10,854    8,441 
Lease liabilities   66,845    81,342    63,257 
Net operating loss carry-forwards   150,781    270,046    210,006 
Depreciation   7,421    4,735    3,682 
Deferred tax liabilities               
Right-of-use assets   (66,416)   (82,133)   (63,872)
Depreciation   
—
    
—
    
—
 
Unbilled revenue   (560,836)   (536,310)   (417,070)
Deferred tax liabilities, net   (391,836)   (251,466)   (195,556)

 

As the deferred tax assets and deferred tax liabilities are generated from the same entity, Springview (S), hence the deferred tax assets and deferred tax liabilities are eligible to net off with each other.