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Deferred Tax Assets | 12 Months Ended
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Mar. 31, 2020
Deferred Tax Assets, Net [Abstract] |
Deferred Tax Assets | The Company is subject to taxation in the Russian Federation, Kazakhstan, Kyrgyzstan, Cyprus, Ukraine, Uzbekistan, Germany and the United States of America. The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2020 and 2019, were 21% for the U.S., 20% for the Russian Federation, Kazakhstan, Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine and 12% for Uzbekistan. Deferred tax assets and liabilities of the Company are comprised of the following:
|  | March 31, 2020 |  |  | March 31, 2019 |
Deferred tax assets: |  |  |  |  |  |
Tax losses carryforward |  | $ | 1,691 |  |  | $ | 2,376 |
Revaluation on trading securities |  |  | 72 |  |  |  | 2,095 |
Accrued liabilities |  |  | 7 |  |  |  | 35 |
Stock compensation expenses |  |  | 4 |  |  |  | - |
Valuation allowance |  |  | (677 | ) |  |  | (3,241 | )
Deferred tax assets |  | $ | 1,097 |  |  | $ | 1,265 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Revaluation on trading securities |  | $ | 513 |  |  | $ | - |
Other liabilities |  |  | 14 |  |  |  | - |
Deferred tax liabilities |  | $ | 527 |  |  | $ | - |
Net deferred tax assets |  | $ | 570 |  |  | $ | 1,265 |
The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of the provision for income taxes at the 21% tax rate compared to the Company’s income tax expense as reported is as follows:
|  | Year ended March 31, 2020 |  |  | Year ended March 31, 2019 |
Profit before tax at 21% and 34% |  | $ | 5,908 |  |  | $ | 1,788 |
Global Intangible Low Taxed Income |  |  | 4,803 |  |  |  | 573 |
Permanent differences |  |  | 793 |  |  |  | 430 |
Stock based compensation |  |  | 551 |  |  |  | 309 |
Valuation allowance |  |  | 416 |  |  |  | 808 |
Nontaxable gains |  |  | 401 |  |  |  | (3,811 | )
Other differences |  |  | 20 |  |  |  | 418 |
Losses carried forward adjustment |  |  | (154 | ) |  |  | 1,678 |
Provision for impairment losses |  |  | (295 | ) |  |  | 386 |
Foreign tax rate differential |  |  | (2,938 | ) |  |  | (1,211 | )
Foreign tax credit |  |  | (3,503 | ) |  |  | - |
Income tax provision |  | $ | 6,002 |  |  | $ | 1,368 |
The income tax expense comprises:
|  | Year ended March 31, 2020 |  |  | Year ended March 31, 2019 |
Current income tax charge |  | $ | 5,307 |  |  | $ | 1,817 |
Deferred income tax charge/(benefit) |  |  | 695 |  |  |  | (449 | )
Income tax provision |  | $ | 6,002 |  |  | $ | 1,368 |
During the years ended March 31, 2020 and 2019, the Company realized net income before income tax of $28,132 and $8,515, respectively. During the same periods, the Company’s effective tax rate was equal to 21.34% and 16.07%, respectively. This increase in income tax expense was primarily attributable to a $43,231 increase in commissions earned by Freedom CY during the fiscal year ended March 31, 2020. Tax losses carryforward as of March 31, 2020 was $1,691 and is subject to income tax in US, Russia, Ukraine and Uzbekistan.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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