v3.26.3
INCOME TAX
 3 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAX

12.       INCOME TAX

 

The provision for income taxes consisted of the following:

      
   Three Months Ended June 30,
   2026  2025
       
Current tax  $–   $– 
Deferred tax   –    – 
           
Income tax expenses  $–   $– 

 

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company mainly operates in Hong Kong that is subject to taxes in the jurisdictions in which they operate, as follows:

 

United States

 

The Company is registered in the State of Nevada and is subject to the tax laws of United States of America. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented. Deferred tax asset is not provided for as the tax losses may not be able to carryforward after a change in substantial ownership of the Company.

 

For the three months ended June 30, 2026 and 2025, there were no operating incomes.

 

BVI

 

Under the current BVI law, ANGL is not subject to tax on income.

 

Hong Kong

 

ASN operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year.

 

As of June 30, 2026, the operations in Hong Kong incurred $2,829,860 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards under Hong Kong tax regime. The Company has provided for a full valuation allowance against the deferred tax assets of $416,715 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

The reconciliation of income tax computed by applying the U.S. federal income tax rate of 21% to the actual income tax expense benefit at the Company’s effective rate is as follows:

            
   Three Months Ended June 30,
   2026  2025
   Amount  Percent  Amount  Percent
Computed “expected” tax expense   137,260    21.0%    39,812    21.0% 
Effect of differential tax rate – subsidiaries (Note i)   (8,719)   (1.3%)   (6,987)   (3.7%)
Tax credits:                    
Income not subject to taxes   –    0.0%    –    0.0% 
Expenses not subject to tax deduction   5,488    0.8%    28,671    15.1% 
Changes in unrecognized tax benefits   (134,029)   (20.5%)   (61,496)   (32.4%)
Income tax expense   –    0.0%    –    0.0% 

 

Note :

(i) Represents the foreign income tax rate differential when compared to U.S. statutory income tax rate for the three months ended June 30, 2026 and 2025.

 

The following table sets forth the significant components of the deferred tax assets of the Company as of June 30, 2026 and March 31, 2026:

      
   June 30, 2026  March 31, 2026
       
Net operating losses carryforwards  $416,715   $357,695 
Less: allowance on deferred tax assets   (416,715)   (357,695)
Deferred tax assets, net  $–   $– 

 

As of June 30, 2026 and March 31, 2026, the Company had no unrecognized tax benefits. Interest and penalty charges, if any, related to income taxes would be classified as a component of the provision for income taxes in the condensed consolidated statements of operations. The Company does not expect any significant change in its uncertain tax positions in the next twelve months.

 

The Company filed income tax returns in the United States federal tax jurisdiction and several state tax jurisdictions. Since the Company is in a loss carryforward position, it is generally subject to examination by federal and state tax authorities for all these tax three years in which a net operating loss carryforward is available.