v3.26.1
INCOME TAX EXPENSES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX EXPENSES

17. INCOME TAX EXPENSES

 

Caymans and BVIs

 

The Company and its subsidiary, JE Cleantech International Ltd., are domiciled in the Cayman Islands and the British Virgin Islands, respectively. Both localities currently enjoy permanent income tax holidays; accordingly, the Company and JE Cleantech International Ltd. do not accrue for income taxes.

 

Singapore

 

The Company’s subsidiaries, JCS-Echigo Pte. Ltd. and Hygieia Warewashing Pte. Ltd, are considered Singapore tax resident enterprises under Singapore tax laws; accordingly, they are subject to enterprise income tax on their taxable income as determined under Singapore tax laws and accounting standards at a statutory tax rate for the year ended December 31, 2025 of 17% (2023 and 2024: 17%).

 

The income tax provision consists of the following components:

 

   2023   2024   2025   2025 
   For the years ended December 31, 
   2023   2024   2025   2025 
   SGD’000   SGD’000   SGD’000   US$’000 
Current income tax expense :                    
Singapore   119    150    190    148 
Foreign jurisdictions   -    -    -    - 
Total current income tax expense   119    150    190    148 
                     
Deferred income tax expense/(benefit):                    
Singapore   (8)   100    (33)   (26)
Foreign jurisdictions   -    -    -    - 
Total deferred income tax expense/(benefit)   (8)   100    (33)   (26)
                     
Total income tax expense   111    250    157    122 
                     
Effective tax rate     17.6 %     88.7 %     4.6 %     4.6 %

 

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate for the year ended December 31, 2025 of 17% (2023 and 2024: 17%) to profit before income tax as a result of the following differences:

 

      2023               2024               2025               2025           
      For the years ended December 31,    
      2023               2024               2025               2025       
      SGD’000       %     SGD’000       %     SGD’000       %     US$’000      %  
Income before tax expenses:       630                  282                  3,393               2,639          
                                                                            
Tax at Singapore statutory income tax rate of 17%       107         17.0        48         17.0        577       17.0       449       17.0  
Reconciling item:                                                                
Tax effect of non-taxable incomes   (47)   (7.5)   (293)   (103.9)   (909)   (26.8)   (707 )   (26.8)
Tax effect of non-deductible expenses       39         6.2        605         214.5        565       16.7       439       16.7  
Tax incentives   -    -    (110)   (38.9)   (133)   (3.9)   (104 )   (3.9)
Under provision in prior years       12         1.9        -         -        57       1.6       45       1.6  
Income tax expense and effective tax rate       111         17.6        250         88.7        157       4.6       122       4.6  

 

Income taxes paid, net of refunds received, consisted of the following:

 

   2023   2024   2025   2025 
   For the years ended December 31, 
   2023   2024   2025   2025 
   SGD’000   SGD’000   SGD’000   US$’000 
Singapore   289    210    72    56 
Foreign jurisdictions   -    -    -    - 
Total   289    210    72    56