v3.26.1
INCOME TAXES
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 10 － INCOME TAXES

 

The provision for income taxes consisted of the following:

 

          
   For the Financial Years Ended May 31, 
   2026   2025   2024 
   $’000   $’000   $’000 
             
Income tax current year   74    -    - 
Income tax prior year   16    1    135 
Income tax refund   -    -    (260)
                
Income tax expense (refund)   90    1    (125)

 

The effective tax rate in the financial years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company’s subsidiaries mainly operate in Singapore and are subject to taxes in the jurisdictions in which they operate, as follows:

 

 

Cayman Islands

 

The Company is considered to be an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States.

 

 

          
   For the Financial Years Ended May 31, 
   2026   2025   2024 
   $’000   $’000   $’000 
             
Loss before income taxes   (476)   (1,771)   - 
Statutory income tax rate   0%   0%   0%
Income tax expense at statutory rate   -    -    - 
                
Income tax expense   -    -    - 

 

BVI

 

JBDI is considered to be an exempted British Virgin Islands Company and is presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States.

 

Singapore

 

Jurong Barrels and JBD Systems are operating in Singapore and are subject to the Singapore tax law at the corporate tax rate at 17% on the assessable income arising in Singapore during its tax year.

 

The reconciliation of the income tax rate to the effective income tax rate based on income before income taxes for the financial years ended May 31, 2026, 2025 and 2024 are as follows:

 

          
   For the Financial Years Ended May 31, 
   2026   2025   2024 
   $’000   $’000   $’000 
             
Income (Loss) before income taxes   686    (948)   (1,102)
Statutory income tax rate   17%   17%   17%
Income tax expense (refund) at statutory rate   117    (161)   (187)
Tax effect of non-taxable income   10    (2)   (14)
Tax effect of non-deductible items   56    161    144 
Under provision in previous financial year   16    1    135 
Deferred tax assets not recognized   -    -    (125)
Utilization of capital allowances   (14)   2    (40)
Others   (95)        (38)
                
Income tax expense (refund)   90    1    (125)

 

 

Deferred income tax assets

 

Deferred income tax assets are recognized for tax losses and capital allowances carried forward to the extent that realization of the related tax benefits through future taxable profits is probable. The Company has unrecognized tax losses of approximately S$510,833 at the reporting date which can be carried forward and used to offset future taxable income subject to meeting certain statutory requirements. The tax losses have no expiry date.

 

Uncertain tax positions

 

The Company evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of May 31, 2026 and 2025, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the financial years ended May 31, 2026, 2025 and 2024 and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from May 31, 2026.