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Income Taxes
 6 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
11. INCOME TAXES

 

The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

 

Cayman Islands

 

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

 

Hong Kong

 

Companies, which are incorporated in Hong Kong, are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception.

 

PRC Tax

 

Decent China is governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), Chinese enterprises are subject to income tax at a rate of 25% after appropriate tax adjustments. Decent China obtained the “high-tech enterprise” tax status and renewed it in December 2022, which reduced its statutory income tax rate to 15%. The high-tech enterprise tax status will expire in December 2025. According to PRC tax regulations, the PRC net operatimg loss can generally carry forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred for gerneral enterprises, while for high-tech enterprises, technology-based small and medium-sized enterprises and eligible integrated circuit enterprises, the maximum carry-forward period is 10 years. Carryback of losses is not permitted. As of April 30, 2026, there were no net operating losses generated for PRC corporate income tax purposes.

A reconciliation of the income tax expenses determined at the statutory income tax rate to the Company’s income taxes is as follows:

 

   For The Six Months Ended
April 30,		 
   2026   2025 
Income tax computed at 25%  $(217,032)  $(112,353)
Different tax rates in other jurisdictions   629,555    163,809 
Tax preferential rate   (144,500)   (19,830)
Non deductible expenses   4,834    1,323 
Super deduction   (78,351)   (3,196)
Tax loss not recognised   11,457    — 
Income tax expense  $205,963   $29,752 

  

   For The Six Months Ended
April 30,		 
   2026   2025 
Current income tax expense  $354,877   $143,621 
Deferred income tax effect   (148,914)   (113,869)
Total income tax expense  $205,963   $29,752 
Effective tax rates   (23.7)%   (6.6)%

 

Deferred tax asset

 

As of April 30, 2026 and October 31, 2025, deferred tax asset consisted of:

 

   October 31,
2026		   October 31,
2025		 
Deferred tax asset        
Provision for credit losses  $384,222   $252,592 
Net operating loss carried forward   11,752    — 
Provision for inventory obsolescence   2,152    2,070 
Lease liabilities   46,442    15,982 
Estimated warranty liabilities   18,024    1,447 
Deferred tax liability          
Right-of-use assets   (51,415)   (23,183)
Totals  $411,177   $248,908