v3.26.3
INCOME TAX EXPENSES
 12 Months Ended
Jun. 30, 2026
Notes and other explanatory information [abstract]  
INCOME TAX EXPENSES

 

27. INCOME TAX EXPENSES

 

Income tax

 

Cayman Islands

 

The Cayman Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to the Company levied by the Government of the Cayman Islands save for certain stamp duties which may be applicable, from time to time, on certain instruments.

 

Japan

 

All group companies are incorporated in Japan and are subject to Japan corporate tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Japan tax laws. The applicable tax rate is 34.6% in Japan.

 

 

TRYHARD HOLDINGS LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

The components of income tax expense reported in the consolidated statements of profit or loss and comprehensive income are as follows:

  

   2024   2025   2026   2026 
   For the years ended June 30, 
   2024   2025   2026   2026 
   JPY’000   JPY’000   JPY’000   US$’000 
Current income tax expense   97,381    75,515    182,808    1,124 
Deferred tax benefit   (3,189)   (41,401)   (116,348)   (715)
Total   94,192    34,114    66,460    409 

 

A reconciliation of the statutory tax rate to the effective tax rate is presented below:

  

   JPY’000       JPY’000       JPY’000     
   For the years ended June 30, 
   2024   2025   2026 
   JPY’000       JPY’000       JPY’000     
Income tax rate in the Cayman Islands, permanent tax holiday   —    0.0%   —    0.0%   —    0.0%
Japanese statutory tax rate   80,075    34.6%   17,007    34.6%   29,121    34.6%
Different tax rates in Japan and other jurisdiction   8,563    3.7%   5,746    11.7%   23,559    27.8%
Effect of non-deductible expenses   3,934    1.7%   4,610    9.4%   8,693    10.3%
Effect of tax losses not recognized   1,620    0.7%   6,751    13.7%   5,087    6.0%
Effective income tax rate   94,192    40.7%   34,114    69.4%   66,460    78.7%

 

Deferred tax assets and liabilities

 

The breakdown of the net deferred tax assets and liabilities is as follows:

  

   As of July 1, 2023   (Charged)/ credited to profit or loss   As of June 30, 2024   (Charged)/ credited to profit or loss   As of June 30, 2025   (Charged)/ credited to profit or loss   As of June 30, 2026   As of June 30, 2026 
   JPY’000   JPY’000   JPY’000   JPY’000   JPY’000   JPY’000   JPY’000   US$’000 
Expected credit losses   22,357    (313)   22,044    10,111    32,155    56,778    88,933    548 
Lease liabilities   571,237    (31,430)   539,807    (108,506)   431,301    (44,371)   386,930    2,379 
Net operating loss carry forwards   —    —    —    41,525    41,525    42,605    84,130    517 
Provision for asset retirement obligation   6,017    191    6,208    (6,058)   150    (150)   —    — 
Fair value change on financial assets at fair value through profit or loss   —    —    —    —    —    14,862    14,862    91 
Total deferred tax assets   599,611    (31,552)   568,059    (62,928)   505,131    69,724    574,855    3,535 
                                         
Right-of-use assets   499,225    (59,335)   439,890    (109,299)   330,591    (31,485)   299,106    1,839 
Investment in sublease   78,568    24,594    103,162    4,970    108,132    (15,139)   92,993    572 
Total deferred tax liabilities   577,793    (34,741)   543,052    (104,329)   438,723    (46,624)   392,099    2,411 
Deferred tax assets, net   21,818    3,189    25,007    41,401    66,408    116,348    182,756    1,124 

 

 

TRYHARD HOLDINGS LIMITED AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS