v3.26.3
TAXATION
 3 Months Ended
Jul. 31, 2026
Income Tax Disclosure [Abstract]  
TAXATION

Note 17: TAXATION

 

A reconciliation between the Company’s actual provision for income taxes and the provision calculated under the Hong Kong and Malaysia statutory rates are as follows:

 

Income Before Income Taxes

 

Income before income taxes was as follows:

 

Description  July 31, 2026   July 31, 2025 
   For the Three-Month Period Ended 
Description  July 31, 2026   July 31, 2025 
U.S. federal and state  $(691,620)  $- 
Foreign   

345,313

    1,510,097 
(Loss)/income before income taxes  $(346,307)  $1,510,097 

 

 

AIRWA INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

Note 17: TAXATION (cont.)

 

Provision for Income Taxes

 

The components of the provision for income taxes were as follows:

  

   July 31, 2026   July 31, 2025 
   For the Three-Month Period Ended 
   July 31, 2026   July 31, 2025 
Current:        
U.S. federal and state  $-   $- 
Foreign   1,242,095    249,166 
Total current income tax expense   1,242,095    249,166 
Deferred:          
U.S. federal and state   -    - 
Foreign   (1,081,209)   - 
Total deferred income tax benefit   (1,081,209)   - 
Income tax expense  $160,886   $249,166 

 

For the three months ended July 31, 2026, current foreign income tax expense was attributable to the Company’s operations in Malaysia. The Company did not incur current income tax expense in the United States or Hong Kong during the period.

 

Effective Income Tax Rate Reconciliation

 

A reconciliation of the income tax benefit computed at the U.S. federal statutory income tax rate of 21% to the Company’s actual income tax expense for the year ended April 30, 2026 is as follows:

  

   For the Three-Month Period Ended 
   July 31, 2026   July 31, 2025 
Description  Amount   Rate   Amount   Rate 
Income tax benefit at U.S. federal statutory rate  $(72,724)   21.0%  $

317,120

    

21.0

%
Foreign tax effects   45,652    (13.3)%   

(67,954

)   

(4.5

)%
Tax effect of preferential tax rate   26,816    (8.7)%   -    

-

%
Tax effect of losses for which no tax benefit was recognized   161,142   (46.5)%   -    

-

%
Income tax expense  $160,886    (46.5)%  $249,166    

16.5

%

 

The Company’s effective income tax rate differed from the U.S. federal statutory income tax rate primarily because no tax benefit was recognized for losses incurred in certain jurisdictions and the Company’s Malaysian operations are subject to a statutory corporate income tax rate of 24%.

 

Uncertain Tax Positions

 

As of July 31 and April 30, 2026, the Company had no material unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions, if any, as a component of income tax expense.