v3.26.1
INCOME TAX
 3 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAX

NOTE – 10 INCOME TAX

 

For the three months ended June 30, 2026 and 2025, the local (“United States of America”) and foreign components of loss before income taxes comprised of the following:

        
   Three months ended June 30, 
   2026   2025 
         
Tax jurisdiction from:          
– Local  $(84,908)  $(42,547)
– Foreign, including          
British Virgin Islands   (804,700)   (250,524)
Hong Kong   (72,979)   (14,539)
           
Loss before income taxes  $(962,587)  $(307,611)

 

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 periods presented.

 

As of June 30, 2026, the operations in the United States of America incurred $2,318,108 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 $486,802 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 June 30, 2026, the operations in Hong Kong incurred $72,979 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 $13,760 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:

 

           
    Three months ended June 30,  
    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:

                       
    Three Months ended June 30,  
    2026     2025  
    Amount     Percent     Amount     Percent  
Computed “expected” tax expense   $ (202,144 )     21.0%     $ (64,598 )      21.0%  
Effect of differential tax rate – subsidiaries     172,271       (17.9% )     62,199       (20.2% )
Tax credits:                                
Income not subject to taxes     (20,749 )     2.1%       –       0.0%  
Expenses not subject to tax deduction     420       0.0%       3,639       (1.2% ) 
Changes in unrecognized tax benefits     50,202       (5.2% )     (1,240 )      0.4%  
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 June 30, 2026 and March 31, 2026:

           
    June 30,     March 31,  
    2026     2026  
             
Deferred tax assets:                
Net operating loss carryforward, from                
US tax regime   $ 486,802     $ 468,971  
Hong Kong tax regime     13,760       8,428  
Less: valuation allowance     (500,562 )     (477,399 )
Deferred tax assets, net   $ –     $ –  

 

The following table summarizes the changes in the valuation allowance for deferred tax assets:

   
Balance, March 31, 2026   $ 477,399  
Addition     23,163  
Balance, June 30, 2026   $ 500,562  

 

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.