v3.26.1
INCOME TAX
 12 Months Ended
Mar. 31, 2026
INCOME TAX  
INCOME TAX

NOTE 10 – INCOME TAX

 

For the years ended March 2026 and 2025, the local (“United States of America”) and foreign components of (loss) income before income taxes were comprised of the following:

 

 

 

Years ended March 31,

 

 

 

2026

 

 

2025

 

Tax jurisdiction from:

 

 

 

 

 

 

-Local(US regime)

 

$(105,277)

 

$38,734

 

-Foreign,including

 

 

 

 

 

 

 

 

    Hongkong

 

 

(1,709)

 

 

(1,972)

    Mainland China

 

 

(24,076)

 

 

(7,318)

 

 

 

 

 

 

 

 

 

Net (loss) income before income taxes

 

$(131,062)

 

$29,444

 

 

The provision for income taxes consisted of the following:

 

 

 

Years ended March 31,

 

 

 

2026

 

 

2025

 

Current tax:

 

 

 

 

 

 

     -Local

 

$-

 

 

$-

 

     -Foreign

 

 

-

 

 

 

-

 

Deferred tax:

 

 

 

 

 

 

 

 

     -Local

 

 

-

 

 

 

-

 

     -Foreign

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Income tax expenses (benefit)

 

$-

 

 

$-

 

 

The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company mainly operates in Mainland China that is subject to taxes in the jurisdictions in which they operate, as follows:

 

United States

 

Yinfu Gold Corporation is established in the State of Wyoming in United States and is subject to Wyoming state and US Federal tax laws. Yinfu Gold Corporation is subject to Federal statutory income tax rate of 21%.

 

Net operation losses ("NOLs") can carry forward indefinitely up to offset 80% of taxable income after CARES Act effect on December 31, 2017. As of March 31, 2026, deferred tax assets resulted from NOLs of $186,745, respectively. The deferred tax asset has been fully reserved by a valuation allowance as the Company believes it is more likely than not that it will not realize the benefits.

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

 

Hongkong

 

Yinfu Group International Holdings Limited was incorporated under the Hong Kong tax laws. The statutory income tax rate is 16.5%. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

 

PRC

 

Yinfu International Holdings Limited was incorporated under the China Enterprise Income Tax Law, or the EIT Law, domestic enterprises and foreign investment enterprises, or FIE, are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to tax holidays or exemptions. NOLs can typically carried forward for a certain number of years (usually five years) to offset against future taxable income.

 

As of March 31, 2026, the Company's PRC operations had net operating losses which resulted in deferred tax assets of $356,584. The deferred tax asset has been fully reserved for valuation allowance as the Company believes it is more likely than not that it will not realize the benefits.

 

Deferred taxes are provided on liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary different amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

The following table sets forth the significant components of the deferred tax assets of the Company.

 

 

 

As of  March 31,

 

 

 

2026

 

 

2025

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carry forwards from

 

 

 

 

 

 

     -US tax regime

 

$186,745

 

 

$171,155

 

     -Mainland China

 

 

356,584

 

 

 

350,565

 

Less: valuation allowance

 

 

(543,329)

 

 

(521,720)

Deferred tax assets, net

 

$-

 

 

$-