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

Note 9 — TAXES

 

Income tax

 

British Virgin Islands

 

The Company is incorporated in the BVI and is not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their shareholders, no BVI withholding tax will be imposed.

 

Hong Kong

 

Pure Beauty, Raytech Innovation and Worry free are incorporated in Hong Kong and are subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong. Pure Beauty; Raytech Innovation and Worry free are taxed at the standard profits tax rate of 16.5%. Under Hong Kong tax law, the subsidiaries are exempted from income tax on their foreign-derived income, and there is no withholding tax in Hong Kong on the remittance of dividends.

 

Taxation in the statement of income represents:

 

    For the years ended March 31,  
    2024     2025     2026     2026  
    HKD     HKD     HKD     US$  
Hong Kong profits tax provision for the year:                        
Current     2,817,000       2,256,487       3,694,352       471,218  
Deferred     –       –       (38,816 )     (4,951 )
      2,817,000       2,256,487       3,655,536       466,267  

 

The following table reconciles Hong Kong statutory rates to the Company’s effective tax rate:

 

    For the years ended March 31,  
    2024     2025     2026     2026  
    HKD     HKD     HKD     US$  
Income before tax     12,753,794       10,524,854       20,346,111       2,595,167  
Hong Kong statutory income tax rate     16.50 %     16.50 %     16.50 %     16.50 %
Income tax expense computed at statutory rate     2,104,376       1,736,601       3,357,109       428,203  
Reconciling items:                                
Non-deductible items in Hong Kong     272,376       1,025,705       958,538       122,262  
Non-taxable items in Hong Kong     (608,034 )     (504,319 )     (448,793 )     (57,244 )
Two-tiered profits tax rates benefit     –       –       (165,000 )     (21,046 )
Tax Effect of amortization of intangible assets acquired in business combination     –       –       (38,816 )     (4,951 )
Under provision for prior year     1,051,282       –       1,498       191  
Tax credit     (3,000 )     (1,500 )     (9,000 )     (1,148 )
Effective income tax expenses     2,817,000       2,256,487       3,655,536       466,267  

 

Uncertain tax positions

 

The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2024, 2025 and 2026, the Company did not have any unrecognized tax benefits. For the years ended March 31, 2024, 2025 and 2026, the Company had no unrecognized tax benefits.