v3.26.3
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Income Taxes
15. Income Taxes

 

The Company and its subsidiaries are subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled.

 

Cayman Islands

 

WF Holding is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to any income tax.

 

British Virgin Islands

 

Under the current tax laws of the British Virgin Islands, WF Venture is not subject to tax on income or capital gains.

 

Malaysia

 

For Win-Fung and RBSB, the income tax is calculated at 24% of the estimated assessable profits for the relevant year.

 

Hong Kong

 

GKI is subject to a Hong Kong profits tax of 16.5% on its activities conducted in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since the acquisition of GKI.

 

The components of profit (loss) before income tax expense are summarized as follows:

 

    For the Six Months Ended
June 30,		  
    2026     2025  
Domestic (Cayman Islands)   $ (82,792,186 )   $ (472,115 )
Foreign (Malaysia)     (313,270 )     223,479  
Foreign (Hong Kong)     (1,022 )     -  
Foreign (Others)     30,078       (14,667 )
Total   $ (83,076,400 )   $ (263,303 )

 

 

The provision for income taxes consisted of the following:

 

    For the Six Months Ended
June 30,		  
    2026     2025  
Current income tax expenses            
Domestic (Cayman Islands)   $ -     $ -  
Foreign (Malaysia)     23,525       57,241  
Foreign (Hong Kong)     -       -  
Foreign (Others)     -       -  
Total current income tax expense     23,525       57,241  
                 
Current income tax expenses                
Domestic (Cayman Islands)   $ -     $ -  
Foreign (Malaysia)     8,385       -  
Foreign (Hong Kong)     -       -  
Foreign (Others)     -       -  
Total deferred income tax benefits     8,385       -  
                 
Total income tax expense   $ 31,910     $ 57,241  

 

The following table presents net of income taxes (refunds) paid, disaggregated by jurisdiction:

 

    For the Six Months Ended
June 30,		  
    2026     2025  
Domestic (Cayman Islands)   $ -     $ -  
Foreign (Malaysia)     (75,503 )     45,708  
Foreign (Hong Kong)     -       -  
Foreign (Others)     -       -  
Total   $ (75,503 )   $ 45,708  

 

Below is a reconciliation of the statutory tax rate to the effective tax rate after the adoption of ASU 2023-09:

 

    For the Six Months Ended
June 30,		  
    2026     2025  
    Amount     Effective
Tax Rate		     Amount     Effective
Tax Rate		  
Loss before income tax expense   $ (83,076,400 )     -     $ (263,303 )     -  
Tax effect at the Malaysia corporate tax rates of 24%     (19,938,336 )     24.00 %     (63,193 )     24.00 %
Non-deductible expenditure     19,897,706       (23.95 )%     120,434       (45.74 )%
Income not subject to tax     (11,060 )     0.01 %     -       - %
Deferred tax assets not recognized     60,075       (0.07 )%     -       - %
Under provision in prior years     23,525       (0.03 )%     -       -  
Total income tax expense   $ 31,910       (0.04 )%   $ 57,241       (21.74 )%

 

 

Deferred income tax results from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The effect of temporary differences that gave rise to net deferred tax assets and deferred tax liabilities and their movements were as follows:

 

    As of  
    June 30,
2026		     December 31,
2025		  
Allowance for credit losses   $ (156,565 )   $ (146,544 )
Accelerated tax depreciation     118,782       100,420  
Total   $ (37,783 )   $ (46,124 )