Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of taxable income/(loss) before income taxes by jurisdiction |
The
total income tax (benefit) expense included in the consolidated statements of operations and comprehensive (loss) income as determined
in accordance with ASC 740 by jurisdiction is as follows:
Schedule
of taxable income/(loss) before income taxes by jurisdiction
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31, 2024 | | |
December 31, 2023 | |
| | |
For the Year Ended | | |
For the Six Months Ended | | |
For the Years Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| Labuan | |
$ | 9,740 | | |
$ | 1,022 | | |
$ | 26,190 | | |
$ | 25,263 | |
| Malaysia | |
| (370,793 | ) | |
| (1,039,138 | ) | |
| 1,280,329 | | |
| 684,759 | |
| Singapore | |
| 43,036 | | |
| 50,082 | | |
| 121,780 | | |
| 64,217 | |
| Total income tax (benefit) expense | |
$ | (318,017 | ) | |
$ | (988,034 | ) | |
$ | 1,428,299 | | |
$ | 774,239 | |
|
| Schedule of reconciliations of the statutory income tax rate and effective income tax rate |
Reconciliation
of the statutory income tax rate and the Company’s effective income tax rate is as follows:
Schedule
of reconciliations of the statutory income tax rate and effective income tax rate
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31, 2024 | | |
December 31, 2023 | |
| | |
For the Year Ended | | |
For the Six Months Ended | | |
For the Years Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| Income tax expense at Labuan statutory rate | |
$ | - | | |
$ | 8,411 | | |
$ | 26,247 | | |
$ | 25,375 | |
| Income tax expense at Malaysia statutory rate | |
| (3,261,415 | ) | |
| 283,787 | | |
| 613,388 | | |
| 710,438 | |
| Income tax expense at Singapore statutory rate | |
| 102,391 | | |
| 69,507 | | |
| 110,461 | | |
| 91,240 | |
| Increases (decreases) due to: | |
| | | |
| | | |
| | | |
| | |
| Other adjustments(1) | |
| 1,032,309 | | |
| (303,211 | ) | |
| 743,918 | | |
| (177,593 | ) |
| Other deferred tax adjustments(2) | |
| 2,325,424 | | |
| (45,490 | ) | |
| (9,092 | ) | |
| 13,072 | |
| Other exemption, rebate and credit | |
| (27,142 | ) | |
| - | | |
| (26,038 | ) | |
| (56,397 | ) |
| (Over) Under provision in prior years(3) | |
| (489,584 | ) | |
| (1,001,038 | ) | |
| (30,585 | ) | |
| 168,104 | |
| Income tax expense (benefit), net | |
$ | (318,017 | ) | |
$ | (988,034 | ) | |
$ | 1,428,299 | | |
$ | 774,239 | |
| (1) | Other
adjustments mainly represent income not subject to tax and expenses not deductible for tax
purposes. The nontaxable or nondeductible items primarily comprise adjustments relating to
chartering fees paid to companies incorporated in Labuan, professional fees, expected credit
loss and foreign exchange differences incurred by Tumpuan Megah. Chartering fees paid to
Labuan companies and certain professional fees are subject to statutory limitations or restrictions
on tax deductibility, and the portion not deductible for income tax purposes is included
in the reconciliation as a nondeductible item. Expected credit loss and foreign exchange
differences include amounts that are not subject to tax or deductible for income tax purposes,
as applicable. |
| (2) | For
the year ended June 30, 2026, it primarily represented the effects of unutilized tax losses
and unabsorbed capital allowances arising during the year, for which deferred tax assets
were fully offset by a valuation allowance, as it is not more likely than not that the related
tax benefits will be realized. |
| (3) | With
the change of accounting year end from December 31 to June 30, the reporting period of Tumpuan
Megah covered 18 months from January 1, 2024 to June 30, 2025. As Tumpuan Megah incurred
a net loss for the six months ended June 30, 2025, the tax loss incurred during the six-month
period reduced the overall assessable profits for the full 18-month reporting period. As
a result, the income tax provision previously recognized for the year ended December 31,
2024 was overstated by $1,001,038 and was adjusted during the six months ended June 30, 2025. |
|
| Schedule of reconciliations of the statutory income tax rate percentage and effective income tax rate percentage |
Schedule
of reconciliations of the statutory income tax rate percentage and effective income tax rate percentage
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31, 2024 | | |
December 31, 2023 | |
| | |
For the Year Ended | | |
For the Six Months Ended | | |
For the Years Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | | |
December 31,
2024 | | |
December 31,
2023 | |
| Income tax expense at Labuan statutory rate | |
| - | | |
| (0.2 | )% | |
| 0.8 | % | |
| 0.7 | % |
| Income tax expense at Malaysia statutory rate | |
| 16.8 | % | |
| (5.2 | )% | |
| 17.6 | % | |
| 19.0 | % |
| Income tax expense at Singapore statutory rate | |
| (0.5 | )% | |
| (1.2 | )% | |
| 3.2 | % | |
| 2.4 | % |
| Increases (decreases) due to: | |
| | | |
| | | |
| | | |
| | |
| Other adjustments | |
| (5.3 | )% | |
| 5.5 | % | |
| 21.4 | % | |
| (4.8 | )% |
| Other deferred tax adjustments | |
| (12.0 | )% | |
| 0.8 | % | |
| (0.3 | )% | |
| 0.4 | % |
| Other exemption, rebate and credit | |
| 0.1 | % | |
| - | | |
| (0.7 | )% | |
| (1.5 | )% |
| (Over) Under provision in prior years | |
| 2.5 | % | |
| 18.2 | % | |
| (0.9 | )% | |
| 4.5 | % |
| Income tax expense (benefit), net | |
| 1.6 | % | |
| 17.9 | % | |
| 41.1 | % | |
| 20.7 | % |
|
| Schedule of deferred tax assets and liabilities |
The
Company recognizes deferred tax assets and liabilities for temporary differences between the financial statement carrying amounts and
tax bases of assets and liabilities, measured at the applicable tax rates.
Schedule
of deferred tax assets and liabilities
| | |
As of June 30, | |
| | |
2026 | | |
2025 | |
| Allowance for expected credit losses | |
$ | 319,380 | | |
$ | 376,883 | |
| Depreciation and amortization | |
| (8,554 | ) | |
| 13,832 | |
| Unrealized foreign currency transaction gains | |
| (336,021 | ) | |
| (323,498 | ) |
| Total deferred tax (liabilities) assets, net | |
$ | (25,195 | ) | |
$ | 67,217 | |
|
| Schedule of movement of company’s deferred tax assets and liabilities |
Movement
of the Company’s deferred tax (liabilities) assets, net, is as follows:
Schedule
of movement of company’s deferred tax assets and liabilities
| | |
As of June 30, | |
| | |
2026 | | |
2025 | |
| Balance at July 1, 2025 and January 1, 2025 | |
$ | 67,217 | | |
$ | - | |
| (Decrease) increase recognized in the income statement | |
| (94,517 | ) | |
| 64,914 | |
| Foreign exchange difference | |
| 2,105 | | |
| 2,303 | |
| Balance at June 30, 2026 and June 30, 2025 | |
$ | (25,195 | ) | |
$ | 67,217 | |
|