v3.26.1
PROVISION FOR INCOME TAXES
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
PROVISION FOR INCOME TAXES

NOTE 14 – PROVISION FOR INCOME TAXES

 

Cayman Islands and British Virgin Islands

 

QMMM Holdings Limited is incorporated in Cayman Islands and Grade A Global Limited and Witty Time Holdings Limited are incorporated in the British Virgin Islands and are not subject to tax on income or capital gains under current Cayman Islands law and British Virgin Islands law, respectively. In addition, upon payments of dividends by these entities to their shareholders, no withholding tax will be imposed.

 

HK SAR

 

On March 21, 2018, the HK SAR Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 21, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.

 

Accordingly, the HK SAR profits tax is calculated at 8.25% on the first HK$2 million of the estimated assessable profits and at 16.5% on the estimated assessable profits above HK$2 million. The following tables provide the reconciliation of the difference between the statutory and effective tax expenses for the years ended September 30, 2025, 2024 and 2023.

 

                   
   For the years ended
September 30,		 
   2025    2024    2023 
                   
Loss before tax expenses  $(1,998,372)   $ (1,580,198 )  $(1,287,661)
Tax expenses at the Cayman Islands statutory income tax rate   

-

     

-

     - 
Income taxes computed at Hong Kong Profits Tax rate   (329,731)     (260,732 )   (212,464)
Tax allowance at the statutory tax rates   (9,968)     (1,008 )   (6,401)
Tax effect on non-assessable income(1)   (278)     (5,214 )   (1,519)
Tax effect on non-deductible expenses   71,901      124,712     222,184 
Tax effect on tax losses not recognized   273,043      147,013     5,336 
Tax effect on utilization of tax losses   (4,967)     (4,771 )   - 
Tax effect on over-provision of income tax   

-

     

-

     - 
Tax effect of two-tier tax rate   

-

     

-

     (3,568)
Income taxes  $-    $ -    $3,568 

 

(1) Income that is not taxable mainly consisted of interest income for the year ended September 30, 2025 and government frants for the years ended September 30, 2024 and 2023, both of which are non-taxable under Hong Kong profits tax law.

 

 

QMMM HOLDINGS LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in US Dollars)

 

NOTE 14 – PROVISION FOR INCOME TAXES (CONTINUED)

 

The following table reconciles the statutory tax rate to the Company’s effective tax rate for the years ended September 30, 2025, 2024 and 2023:

 

                     
    For the years ended
September 30,		  
    2025     2024     2023  
                     
Cayman Islands statutory tax rate     0.0 %     0.0 %    

0.0

 %
HK SAR statutory tax rate     16.5 %     16.5 %    

16.5

 %
Tax allowance     0.5 %     0.1 %    

0.5

 %
Non-assessable income     0.0 %     0.3 %    

0.1

 %
Non-deductible expenses     (3.6 )%     (7.9) %    

(17.3

 )%
Tax losses not recognized     (13.7 )%     (9.3) %    

(0.4

 )%
Utilization of tax losses     0.3 %     0.3 %    

-

  
Two-tier tax rate     -       -      

0.3

 %
Effective tax rate   $ -     $ -      

(0.3

 )%

 

Deferred Tax Assets:

 

           
   As of September 30,
   2025   2024 
         
Deferred Tax Assets:          
Net operating loss carry forward  $454,491   $183,535 
Lease liability   21,860    - 
Net deferred tax liabilities offset   (31,758)   - 
Valuation allowance   (444,593)   (183,535)

Net deferred tax assets

  $-   $- 

 

Deferred Tax Liabilities:

 

           
   As of September 30, 
   2025   2024 
Deferred Tax Liabilities:          
Operating lease right-of-use assets  $(21,953)  $- 
Property and equipment   (9,012)   - 
Intangible assets   (793)   - 
Deferred tax assets offset   31,758    - 
Net deferred tax liabilities  $-   $- 

 

In assessing the realizability of deferred tax assets, management consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making the assessment. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. The Company concludes that it cannot reliably predict future profitability, and accordingly, unable to determine if it can derive future benefits from the deferred tax assets arising from the net operating loss carry forward.

 

 

QMMM HOLDINGS LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Stated in US Dollars)