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

15. INCOME TAX EXPENSES

 

Caymans and BVIs

 

The Company and its subsidiary, JE Cleantech International Ltd., are domiciled in the Cayman Islands and the British Virgin Islands, respectively. Both localities currently enjoy permanent income tax holidays; accordingly, the Company and JE Cleantech International Ltd. do not accrue for income taxes.

 

Singapore

 

The Company’s subsidiaries, JCS-Echigo Pte. Ltd. and Hygieia Warewashing Pte. Ltd, are considered Singapore tax resident enterprises under Singapore tax laws; accordingly, they are subject to enterprise income tax on their taxable income as determined under Singapore tax laws and accounting standards at a statutory tax rate for the period ended June 30, 2026 of 17% (2025: 17%).

 

The income tax provision consists of the following components:

 

   2025   2026   2026 
   For the six-month period ended June 30, 
   2025   2026   2026 
   SGD’000   SGD’000   USD’000 
Current income tax expense:               
Singapore   20    811    627 
Foreign jurisdictions   -    -    - 
Total current income tax expense   20    811    627 
Deferred income tax expense/(benefit):               
Current year   -    -    - 
Foreign jurisdictions   -    -    - 
Total deferred income tax expense/(benefit)   -    -    - 
Income Tax Expense   20    811    627 
                
Effective tax rate   (2.5)%   32.3%   32.3%

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2025: 17%) to profit before income tax as a result of the following differences:

 

   2025       2026       2026     
   For the six-month period ended June 30, 
   2025       2026       2026     
   SGD’000   %   SGD’000   %   US$’000   % 
Income before tax expenses:        (812)        2,511         1,940      
                               
Tax at Singapore statutory income tax rate of 17%   (138)   17.0    427    17.0    330    17.0 
Reconciling item:                              
                               
Tax effect of non-deductible expenses   158    (19.5)   384    15.3    297    15.3 
                               
                               
Income tax expense and effective tax rate      20    (2.5)   811    32.3    627    32.3 

 

Income taxes paid, net of refunds received, consisted of the following:

 

   2025   2026   2026 
   For the six-month period ended June 30, 
   2025   2026   2026 
   SGD’000   SGD’000   US$’000 
Singapore   70    284    219 
Foreign jurisdictions   -    -    - 
Total   70    284    219