v3.26.1
Income tax
 12 Months Ended
Dec. 31, 2025
Notes and other explanatory information [abstract]  
Income tax

 

8.(Loss)/profit before tax

 

The Group’s (loss)/profit before tax is arrived at after charging/crediting:-

 

   2025   2025   2024   2023 
   US$   HK$   HK$   HK$ 
                 
Expense relating to short-term leases   373,687    2,908,520    1,499,771    2,174,712 
Written off of property, plant and equipment   15,521    120,803    526,279    6,702,181 
Employer’s contribution to defined contribution plan (included in staff costs below)   585,148    4,554,380    5,270,478    5,402,612 
Impairment of property, plant and equipment   241,205    1,877,371    4,549,381    - 
Impairment of right-of-use assets   527,031    4,102,040    5,013,080    - 
Employee benefits expenses                    
- key management personnel and directors’ remuneration (Note 33)   840,908    6,545,039    4,585,352    7,788,000 
- staff costs (including key management personnel and directors’ remuneration)   19,299,674    150,215,156    169,577,298    177,874,361 

  

9. Income tax

 

For the years ended December 31, 2025, 2024 and 2023, under the two-tiered profits tax rates regime in Hong Kong, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and 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%. Provision for Taiwan Corporate Income Tax has been made at 20% on the estimated assessable profits.

 

 

MasterBeef Group and its subsidiaries

 

 

 

Notes to the Consolidated Financial Statements (Continued)

December 31, 2025, 2024 and 2023

 

 

 

9. Income tax (continued)

 

Details of income tax are as follows:

 

   2025   2025   2024   2023 
   US$   HK$   HK$   HK$ 
                 
Current tax – Hong Kong                    
- current year provision   721,119    5,612,684    7,522,946    6,407,506 
- prior year over-provision   -    (2)   (9,923)   (1,049)
Current tax – Taiwan   6,645    51,722    5,775    - 
Total current tax   727,764    5,664,404    7,518,798    6,406,457 
Deferred tax (Note 14)   168,602    1,312,284    (4,805,091)   1,251,531 
                     
Total tax expenses for the year   896,366    6,976,688    2,713,707    7,657,988 

 

A reconciliation of the tax expense applicable to (loss)/profit before tax at the statutory rates for the jurisdictions or countries in which the Group and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates is as follows:

 

   2025   2025   2024   2023 
   US$   HK$   HK$   HK$ 
                 
(Loss)/profit before tax   (5,852,409)   (45,551,045)   35,614,151    (29,788,123)
                     
Tax at applicable rate   (978,563)   (7,616,451)   5,766,512    (5,018,726)
Income not subject to tax   (20,460)   (159,247)   (11,142,285)   (177,009)
Non-deductible expenses   688,343    5,357,582    2,513,924    4,613,617 
Income tax exemption and rebate   (2,313)   (18,000)   (10,500)   (30,000)
Tax effect of deductible temporary differences not recognised   646,137    5,029,080    1,331,573    4,213,670 
Utilisation of previously unrecognised tax losses   (9,090)   (70,749)   (395,030)   (1,052,220)
Over-provision for previous year   -    (2)   (9,923)   (1,049)
Difference in tax rate in different countries   6,645    51,722    5,775    - 
Tax losses not recognised   565,667    4,402,753    4,653,661    5,146,140 
Others   -    -    -    (36,435)
                     
Tax charge at the Group’s effective rate   896,366    6,976,688    2,713,707    7,657,988 

 

Unrecognised tax losses

 

Deferred income tax assets are recognised to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. The Group have the unrecognised tax losses of approximately HK$60,921,000 (2024: HK$33,355,000 and 2023: HK$38,515,000) at the reporting date which can be carried forward and used to offset against future taxable income subject to meeting certain statutory requirements. The tax losses have no expiry date. In the opinion of the directors, no deferred tax assets have been recognised for the subsidiaries which are loss-making and have unpredictability of future profit streams.

 

 

MasterBeef Group and its subsidiaries

 

 

 

Notes to the Consolidated Financial Statements (Continued)

December 31, 2025, 2024 and 2023