v3.26.1
Taxes
 6 Months Ended
Jun. 30, 2026
Taxes [Abstract]  
Taxes

NOTE 14 — Taxes

 

(a) Corporate Income Taxes (“CIT”)

 

Nevada

 

Nevada does not have a corporate income tax.

 

Australia

 

Under Australian tax law, the applicable corporate income tax rate is 30%, or 25% if the company qualifies as a base rate entity (with annual turnover less than AUD 50 million and 80% or less of its assessable income from passive sources). In addition, there is no time limit for the carryforward of tax losses, allowing them to be carried forward indefinitely. However, when a company applies carried-forward losses, it must pass either the Continuity of Ownership Test (COT) or the Same Business Test (SBT) to ensure that the loss deduction complies with the regulations.

 

Taiwan

 

Under Taiwan tax law, the applicable corporate income tax rate is fixed at 20% effective from January 1, 2019. Operating losses may be carried forward to the tenth succeeding tax year when a “blue return” is filed or when the return is certified by an independent certified public accountant. No carry-back of losses is permitted.

 

i) The components of the income tax provision are as follows:

 

    Three months ended
June 30,
2026		     Three months ended
June 30,
2025		  
Current income tax expenses     9,371       -  
Deferred income tax expenses     267       -  
Income tax expenses   $ 9,638       -  

 

    Six months ended
June 30,
2026		     Six months ended
June 30,
2025		  
Current income tax expenses     36,530       -  
Deferred income tax expenses     14,136       -  
Income tax expenses   $ 50,666       -  

 

ii) The following table reconciles Australia statutory rates to the Group’s income tax expenses:

 

    Three months ended
June 30,
2026		     Three months ended
June 30,
2025		  
Loss before tax   $ (40,195 )     (9,920 )
Australia statutory income tax rate     25.0 %     25.0 %
Provision for income taxes     (10,049 )     (2,480 )
Non-taxable income taxes     -       2,805  
Non-deductible expenses     19,597       4,315  
Change in valuation allowance     -       615  
Others     90       (5,255 )
Income tax expenses   $ 9,638       -  
Effective tax rate     (24.0 )%     -  

 

    Six months ended
June 30,
2026		     Six months ended
June 30,
2025		  
Income/(loss) before tax   $ 45,784       (22,722 )
Australia statutory income tax rate     25.0 %     25.0 %
Provision for income taxes     11,446       (5,681 )
Non-taxable income taxes     -       (6,402 )
Non-deductible expenses     21,664       4,315  
Change in valuation allowance     -       21,392  
Others     17,556       (13,624 )
Income tax expenses   $ 50,666       -  
Effective tax rate     110.7 %     -  

 

iii) The following table reconciles Australia statutory rates to the Group’s effective tax rate:

 

    Three months
ended
June 30,
2026		     Three months
ended
June 30,
2025		  
Australia statutory income tax rate     25.0 %     25.0 %
Non-taxable income     -       (28.3 )%
Non-deductible expenses     (48.8 )%     (43.5 )%
Change in valuation allowance     -       (6.2 )%
Others     (0.2 )%     53.0 %
Effective tax rate     (24.0 )%     -  

 

    Six months
ended
June 30,
2026		     Six months
ended
June 30,
2025		  
Australia statutory income tax rate     25.0 %     25.0 %
Non-taxable income     -       28.1 %
Non-deductible expenses     47.4 %     (19.0 )%
Change in valuation allowance     -       (94.1 )%
Others     38.3 %     60.0 %
Effective tax rate     110.7 %     -  

 

Deferred Taxes

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax assets and deferred tax liabilities were as follows:

 

    June 30,
2026		     December 31,
2025		  
Deferred tax assets:            
Net operating loss carry forward   $ -       13,355  
Total deferred tax assets                
Less: valuation allowance     -       -  
Deferred tax assets, net   $ -       13,355  

 

iv)

 The following summarizes deferred assets, net and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

 

    June 30,
2026		     December 31,
2025		  
Deferred tax assets, net:            
Balance as of beginning   $ 13,355       -  
Addition     -       12,948  
Utilization     (14,136 )     -  
Foreign currency translation adjustments     781       407  
Ending balance   $ -       13,355  

 

The deferred tax liabilities are nil and nil as of June 30, 2026 and December 31, 2025.

 

As of June 30, 2026 and December 31, 2025, the amount of tax loss carry-forwards of the Group was as following:

 

Location   June 30,
2026		     December 31,
2025		  
Nevada   $ -       -  
Australia     -       352  
Taiwan     -       66,334  
    $ -       66,686  

 

(b) Tax payable

 

Taxes payable consist of the following:

 

    June 30,
2026		     December 31,
2025		  
Income tax payable   $ 32,992       -