v3.26.3
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Income taxes

16. Income taxes

 

(a) Income taxes recognized in consolidated statements of profit or loss:

 

   For the
year ended
December 31,
2023		   For the
year ended
December 31,
2024		   For the
year ended
December 31,
2025		 
   MYR   MYR   MYR   USD 
Current tax                
Provision for the year   1,355,882    2,637,694    3,960,142    976,366 
Under provision for taxes   
–
    225,946    1,468,846    362,142 
Deferred tax   
–
    (30,023)   (21,238)   (5,236)
    1,355,882    2,833,617    5,407,750    1,333,272 

 

Notes:

 

  1) Cayman Islands

 

Under the current tax laws of the Cayman Islands, the Group is not subject to any income tax in the Cayman Islands.

 

  2) Malaysia

 

Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while preferential tax rates, tax holidays, and tax exemptions may be granted on a case-by-case basis.

 

For the fiscal year ended December 31, 2025, 2024 and 2023, the tax rate is 24% for companies incorporated in Malaysia with paid-in capital of MYR 2.5 million or more.

 

(b) Reconciliation between tax expenses and accounting profit at applicable tax rates:

 

   For the
year ended
December 31,
2023		   For the
year ended
December 31,
2024		   For the
year ended
December 31,
2025		 
   MYR   MYR   MYR   USD 
Profit before income taxes   5,110,267    6,345,785    11,990,753    2,956,301 
Notional tax on profit before taxation, calculated at the rates applicable to the respective tax jurisdictions   1,226,464    1,522,988    2,877,781    709,512 
Effect of tax rates in foreign jurisdictions   135,602    1,064,667    1,015,615    250,398 
Non-deductible expenses   8,777    20,016    45,508    11,220 
Tax effect on capital allowance   (14,961)   
–
    
–
    
–
 
Under provision for taxes   
–
    225,946    1,468,846    362,142 
Tax expenses for the year   1,355,882    2,833,617    5,407,750    1,333,272 

(c) Deferred tax recognized in the consolidated statement of financial position

 

The significant components of deferred taxes recognized in the consolidated statement of financial position and the movements during the year presented are as follows:

 

   As of
December 31,
2024		   As of
December 31,
2025		 
   MYR   MYR   USD 
Deferred tax assets:            
- Allowance for credit losses   178,526    247,400    60,996 
- Lease liability   598,394    502,945    124,000 
Total deferred tax assets   776,920    750,345    184,996 
Net off against deferred tax liabilities   (746,897)   (699,084)   (172,358)
Net deferred tax assets   30,023    51,261    12,638 
                
Deferred tax liabilities:               
- Right-of-use asset   (546,530)   (424,262)   (104,601)
- Depreciation and amortization   (200,367)   (274,822)   (67,757)
Total deferred tax liabilities   (746,897)   (699,084)   (172,358)
Net off against deferred tax assets   746,897    699,084    172,358 
Net deferred tax liabilities   
–
    
–
    
–
 

 

(d) Uncertain tax position

 

As of December 31, 2025, the Company accrued tax liabilities of MYR 59,349,444 (USD 2,305,090). According to the Income Tax Act (ITA) 1967, all income tax payments must be made by the specified due date to avoid penalties. If payments are not settled by this deadline, the Act stipulates that penalties will be imposed on any outstanding amounts. As of December 31, 2025, based on statutory penalty rate, the Company accrued and recorded penalty of MYR 992,272 (USD 244,643) associated with unpaid income tax liabilities, which have been reflected in the consolidated statements of income and comprehensive income. The Company expects to settle the tax liability in fiscal year 2026.