v3.26.1
INCOME TAX
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE – 10 INCOME TAX

 

For the years ended March 31, 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  $(203,026)  $(129,172)
- Foreign, including          
British Virgin Islands   (1,951,496)   2,110,959 
Hong Kong   (29,657)   (33,695)
           
(Loss) income before income taxes  $(2,184,179)  $1,948,092 

 

United States of America

 

King Resources, Inc.is registered in the State of Delaware and is subject to tax laws of the United States of America. The U.S. corporate income tax rate is 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued for interest or penalties as they were not material to its results of operations for the years presented.

 

As of March 31, 2026, the operations in the United States of America incurred $2,233,200 of cumulative net operating losses which can be carried forward indefinitely to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $468,971 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

BVI

 

Under the current BVI law, the Company is not subject to tax on income.

 

Hong Kong

 

As of March 31, 2026, the operations in Hong Kong incurred $36,996 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards under Hong Kong tax regime. the Company has provided for a full valuation allowance against the deferred tax assets of $8,428 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

The provision for income taxes consisted of the following:

        
   Years ended March 31, 
   2026   2025 
         
Current:          
- Local (US tax regime)  $–   $– 
- Foreign   –    – 
           
Deferred:          
- Local   –    – 
- Foreign   –    – 
           
Income tax expenses  $–   $– 

 

The reconciliation of income tax computed by applying the U.S. federal income tax rate of 21% to the actual income tax (expense) benefit at the Company’s effective rate is as follows:

                
   Years ended March 31, 
   2026   2025 
   Amount   Percent   Amount   Percent 
Computed “expected” tax expense  $(458,678)   21.0%   $409,099    21.0% 
Effect of differential tax rate – subsidiaries   411,150    (19.0%)   (441,785)   (22.7%)
Tax credits:                    
Income not subject to taxes   (20,807)   1.0%    (139)   (0.0%)
Expenses not subject to tax deduction   421    0.0%    8,093    0.4% 
Changes in unrecognized tax benefits   67,914    (3.0%)   24,732    1.3% 
Income tax expense  $–    0.0%   $–    0.0% 

 

The following table sets forth the significant components of the deferred tax assets of the Company as of March 31, 2026 and 2025:

        
   As of March 31, 
   2026   2025 
         
Deferred tax assets:          
Net operating loss carryforward, from          
US tax regime  $468,971   $524,068 
Hong Kong tax regime   8,428    4,303 
Less: valuation allowance   (477,399)   (528,371)
Deferred tax assets, net  $–   $– 

 

The Company filed income tax returns in the United States federal tax jurisdiction and the Delaware state tax jurisdiction. Since the Company is in a loss carryforward position, it is generally subject to examination by federal and state tax authority for all tax years in which a loss carryforward is available.