v3.26.1
Taxes
 6 Months Ended
Mar. 31, 2026
Taxes [Abstract]  
TAXES

13. TAXES

 

Income tax

 

Cayman Islands

 

Under the current laws of the Cayman Islands, we are 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.

 

BVI

 

Nifty Holdings is incorporated in the BVI and is not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their shareholders, no BVI withholding tax will be imposed.

 

Hong Kong

 

Multi Ridge is incorporated in Hong Kong and is 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. No provisions for Hong Kong profit tax have been made as Multi Ridge had no assessable profits derived from or earned in Hong Kong for the year ended September 30, 2024 and 2025. Under Hong Kong tax law, Multi Ridge is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

 

China

 

New Brand and Pingyuan are 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”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate.

 

Dividend distribution out of the retained profits of foreign-invested enterprises in the PRC earned after January 1, 2008 is subject to withholding income tax at a tax rate of 10% unless reduced by treaty.

 

Significant components of the provision for income taxes are as follows:

 

    For the six months ended March 31,  
    2025     2026     2026  
Tax expense (benefit):   RMB     RMB     US$  
Current:                  
PRC     (328,319 )     -       -  
Total current     (328,319 )     -       -  
Deferred:                     　  
PRC     823,197       1,457,734       211,327  
Total deferred     823,197       1,457,734       211,327  
Total provision for income taxes     494,878       1,457,734       211,327  

 

The following table reconciles PRC statutory rates to our effective tax rate:

 

    For the six months ended
March 31,		  
    2025     2026  
Taxed at PRC statutory tax rates     25.0 %     25.0 %
Tax effect of expenses not deductible for tax purpose     (10.8 )%     0.0 %
Tax effect of different tax rate for operating in another jurisdiction     (3.4 )%     (4.0 )%
Valuation allowance     - %     2.2 %
Others     (24.0 )%     0.0 %
Total provision for income taxes     (13.2 )%     23.2 %

 

Deferred tax, net

 

Significant components of deferred tax assets were as follows:

 

    September 30,     March 31,  
    2025     2026     2026  
    RMB     RMB     US$  
Deferred tax assets:                        
Provision for credit losses     3,791,377       2,269,772       329,048  
Net operating loss     1,883,721       1,947,591       282,342  
Less valuation allowance     (1,425,595 )     (1,425,594 )     (206,668 )
Total deferred tax assets, net     4,249,503       2,791,769       404,722  

 

The movement of deferred tax assets were as follows:

 

    September 30,     March 31,  
    2025     2026     2026  
    RMB     RMB     US$  
Deferred tax assets:                  
Beginning balance     2,722,233       4,249,503       616,049  
Movement     1,527,270       (1,457,734 )     (211,327 )
Ending balance     4,249,503       2,791,769       404,722