| Schedule of Current and Deferred Portions of the Income Tax (Benefits) Expenses |
The current and deferred portions of the income tax (benefits) expenses included in the consolidated statements of operations and comprehensive loss as determined in accordance with ASC 740 are as follows: | | | For the Years Ended March 31, | | | | | 2026 | | | 2025 | | | 2024 | | | Current taxes | | $ | (874 | ) | | $ | 64,427 | | | $ | 15,856 | | | Deferred taxes | | | (21,911 | ) | | | (21,193 | ) | | | (2,497 | ) | | Income tax (benefits) expenses | | $ | (22,785 | ) | | $ | 43,234 | | | $ | 13,359 | |
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| Schedule of Reconciliation between Income Tax (Benefits) Expenses and Effective Tax Rate |
A reconciliation of the difference between the expected income tax (benefits) expenses computed at Hong Kong profits tax rate of 16.5% and the Group’s reported income tax benefits is shown in the following table: | | | For the Years Ended March 31, | | | | | 2026 | | | 2025 | | | 2024 | | | Loss before income taxes | | $ | (13,861,012 | ) | | $ | (4,274,408 | ) | | $ | (4,576,119 | ) | | Applicable income tax rate in Hong Kong | | | 16.5 | % | | | 16.5 | % | | | 16.5 | % | | Income tax benefits at applicable income tax rate | | $ | (2,287,067 | ) | | $ | (705,277 | ) | | $ | (755,060 | ) | | Non-deductible expenses | | | 5,358 | | | | 5,709 | | | | 2,644 | | | Income not subject to tax | | | (12 | ) | | | (148 | ) | | | (40 | ) | | Tax losses not expected to be utilized (1) | | | 2,078,533 | | | | 875,720 | | | | 639,889 | | | Tax effect of two-tiered profits tax rates | | | (2,563 | ) | | | (21,554 | ) | | | (62,480 | ) | | (Over) Under-provision in previous years | | | (2,814 | ) | | | 4,632 | | | | 26,762 | | | Change in valuation allowance | | | 185,780 | | | | (115,848 | ) | | | 161,644 | | | Income tax (benefits) expenses | | $ | (22,785 | ) | | $ | 43,234 | | | $ | 13,359 | | | (1) | Losses not expected to be utilized for the year ended March 31, 2026 mainly represented expenses incurred by the Company and MFHK. For the year ended March 31, 2025, such expenses were mainly incurred by the Company. For the year ended March 31, 2024, such expenses were incurred by the Company and IWHL. As the Company, MFHK and IWHL did not conduct substantive revenue-generating operations during the relevant years, management considered that such expenses were not eligible to be carried forward to offset taxable profits in subsequent periods under the applicable Hong Kong tax laws. Accordingly, no deferred tax assets were recognized in respect of these amounts. For tax losses that are eligible for carryforward, deferred tax assets are recognized only to the extent that realization is considered more-likely-than-not. A valuation allowance is provided against deferred tax assets when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. | The following table reconciles the statutory tax rate to the Group’s effective tax rate for the years ended March 31, 2026, 2025 and 2024: | | | For the Years Ended March 31, | | | | | 2026 | | | 2025 | | | 2024 | | | | | | | | | | | | | | Applicable income tax rate | | | 16.5 | % | | | 16.5 | % | | | 16.5 | % | | Tax effect on non-deductible expense | | | (0.1 | )% | | | (0.2 | )% | | | (0.1 | )% | | Tax effect on income not subject to tax | | | - | % | | | - | % | | | - | % | | Tax losses not expected to be utilized | | | (15.0 | )% | | | (20.4 | )% | | | (13.9 | )% | | Tax effect on two-tiered profits tax rates | | | - | % | | | 0.5 | % | | | 1.4 | % | | Tax effect on (over) under-provision in previous years | | | - | % | | | (0.1 | )% | | | (0.6 | )% | | Tax effect on change in valuation allowance | | | (1.3 | )% | | | 2.7 | % | | | (3.5 | )% | | Effective tax rate | | | 0.1 | % | | | (1.0 | )% | | | (0.2 | )% |
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| Schedule of Deferred Tax Assets and Liabilities |
Components of the Group’s deferred tax assets and liabilities are as follows: | | | As of March 31, | | | | | 2026 | | | 2025 | | | Deferred tax assets: | | | | | | | | Allowance for credit loss | | $ | 23,407 | | | $ | 17,477 | | | Net operating loss carry forwards | | | 284,059 | | | | 99,745 | | | Depreciation and amortization | | | 22,153 | | | | 6,432 | | | Less: valuation allowances | | | (284,059 | ) | | | (99,745 | ) | | Total deferred tax assets, net | | $ | 45,560 | | | $ | 23,909 | |
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| Schedule of Valuation Allowance Against Deferred Tax Assets |
Movement of the Group’s valuation allowance against deferred tax assets is as follows: | | | As of March 31, | | | | | 2026 | | | 2025 | | | Balance at beginning of the year | | $ | 99,745 | | | $ | 214,543 | | | Increase (decrease) recognized in the income statement | | | 185,780 | | | | (115,848 | ) | | Exchange difference | | | (1,466 | ) | | | 1,050 | | | Balance at end of the year | | $ | 284,059 | | | $ | 99,745 | |
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