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

13. INCOME TAX EXPENSES

 

Caymans Islands

 

The Company is domiciled in the Cayman Islands. This locality currently enjoys permanent income tax holidays; accordingly, the Company does not accrue for income taxes.

 

Singapore

 

The Company’s subsidiaries, Maxwill Pte. Ltd., Maxwill (Asia) Pte. Ltd., LP Grace Pte. Ltd., Maxwill Foodlink Pte. Ltd., Davis Commodities Pte. Ltd., and Davis Commodities SEA Pte. Ltd., Davis Commodities Global Pte. Ltd., and Davis Commodities Asia 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 of 17% (2024: 17%).

 

The income tax provision consists of the following components:

            
   For the years ended
December 31,		 
   2023   2024   2025 
   US$’000   US$’000   US$’000 
Singapore entity:               
Current year   150    15    *– 
Under-provision in prior year   –    163    – 
Deferred tax   (1)   –    – 
Non-Singapore entity:   –    –    – 
Income tax expense   149    178    *– 

 

*  Denotes amount less than US$1,000

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2024: 17%) to profit/(loss) before income tax as a result of the following differences:

                              
   For the years ended
December 31,
   2023  2024  2025
   US$’000    %    US$’000    %    US$’000    %  
Income/(loss) before tax expenses:  1,235         (3,351)        (5,035)      
                               
Tax at the domestic income tax rate  210    17.0    (570)   17.0    (856)   17.0  
Tax of different tax rate of other jurisdiction  –    –    –    –    372    (7.4 )
Tax effect of expenses that are not deductible in determining taxable profit  21    1.7    142    (4.2 )  337    (6.7 )
Non-taxable incomes  (7)   (0.6 )  *–    –    *–    –  
Tax exemption  (15)   (1.2 )  (15)   0.4    (1)   0.0  
Change in valuation allowance  –    –    473    (14.1 )  155    (3.1 )
Tax rebate  –    –    (15)   0.4    –    –  
Capital allowances and rebate  (155)   (12.6 )  –    –    –    –  
Others  95    7.7    163    (4.9 )  (7)   0.1  
Total income tax expenses  149    12.1    178    (5.3 )  *–    ––  

_______________ 

* Denotes amount less than US$1,000.

 

The significant component of the Company’s deferred tax asset is as follows:

         
   December 31, 
   2024   2025 
   US$’000   US$’000 
Net operating loss carryforwards   473    628 
    (473)   (628)
    –    – 

 

As of December 31, 2024 and 2025, the Company had net operating loss carryforwards of US$2,782,000 and US$3,694,000, respectively. These losses can offset future taxable income and can be carried forward indefinitely. The management considers evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The Company believed that it was more likely than not that the Company will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in Singapore. As a result, the valuation allowance of US$473,000 and US$628,000 was recorded against the gross deferred tax asset balance as of December 31, 2024 and 2025, respectively.