v3.26.1
Taxes
 3 Months Ended
Mar. 31, 2026
Taxes [Abstract]  
Taxes

NOTE 10 — Taxes

 

(a)Corporate Income Taxes (“CIT”)

 

Nevada

 

Nevada does not have a corporate income tax.

 

Australia

 

Under Australian tax law, the applicable corporate income tax rate is 30%, or 25% if the company qualifies as a base rate entity (with annual turnover less than AUD 50 million and 80% or less of its assessable income from passive sources). In addition, there is no time limit for the carryforward of tax losses, allowing them to be carried forward indefinitely. However, when a company applies carried-forward losses, it must pass either the Continuity of Ownership Test (COT) or the Same Business Test (SBT) to ensure that the loss deduction complies with the regulations.

Taiwan

 

Under Taiwan tax law, the applicable corporate income tax rate is fixed at 20% effective from January 1, 2019. Operating losses may be carried forward to the tenth succeeding tax year when a “blue return” is filed or when the return is certified by an independent certified public accountant. No carry-back of losses is permitted.

 

i)The components of the income tax provision are as follows:

 

   Three months ended
March 31,
2026		   Three months ended
March 31,
2025		 
Current income tax expenses   27,159    
-
 
Deferred income tax expenses   13,869    
-
 
Income tax expenses  $41,028    
-
 

 

ii)The following table reconciles Australia statutory rates to the Group’s income tax expenses:

 

   Three months ended
March 31,
2026		   Three months ended
March 31,
2025		 
Income/(loss) before tax  $85,979    (12,802)
Australia statutory income tax rate   25%   25%
Provision for income taxes   21,495    (3,201)
Non-taxable income taxes   (3,220)   (9,207)
Non-deductible expenses   5,287    
-
 
Change in valuation allowance   
-
    20,777 
Others   17,466    (8,369)
Income tax expenses  $41,028    
-
 

 

Deferred Taxes

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax assets and deferred tax liabilities were as follows:

 

   March 31,
2026		   December 31,
2025		 
Deferred tax assets:        
Net operating loss carry forward  $
-
    13,355 
Total deferred tax assets          
Less: valuation allowance   
-
    
-
 
Deferred tax assets, net  $
-
    13,355 
iii)The following summarizes deferred assets, net and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

 

   March 31,
2026		   December 31,
2025		 
Deferred tax assets, net:        
Balance as of beginning  $13,355    
-
 
Addition   
-
    12,948 
Utilization   (13,869)   
-
 
Foreign currency translation adjustments   514    407 
Ending balance  $
-
    13,355 

 

The deferred tax liabilities are nil and nil as of March 31, 2026 and December 31, 2025.

 

As of March 31, 2026 and December 31, 2025, the amount of tax loss carry-forwards of the Group was as following:

 

Location   March 31,
2026		     December 31,
2025		  
Nevada   $
-
      
-
  
Australia    
-
       352  
Taiwan    
-
       66,334  
    $
-
       66,686  

 

(b)Tax payable

 

Taxes payable consist of the following:

 

   March 31,
2026		   December 31,
2025		 
Income tax payable  $23,530    
    -
 
   $23,530    
-