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DEFERRED TAX (LIABILITIES)/ASSETS | 12 Months Ended
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Mar. 31, 2022
Income Tax Disclosure [Abstract] |
DEFERRED TAX (LIABILITIES)/ASSETS | DEFERRED TAX (LIABILITIES)/ASSETS The Company is subject to taxation in Russia, 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, 2022 and 2021, were 21% for the U.S., 20% for Russia, Kazakhstan, Azerbaijan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. As of March 31, 2022 and 2021, deferred tax assets and liabilities of the Company were comprised of the following:
| March 31, 2022 |  | March 31, 2021
Deferred tax assets: |  |  |
Revaluation on trading securities | $ | 5,760 |  |  | $ | — |
Tax losses carryforward | 5,679 |  |  | 316 |
Accrued liabilities | 967 |  |  | 236 |
Depreciation | — |  |  | 16 |
Stock compensation expenses | — |  |  | — |
Valuation allowance | — |  |  | (316) |
Deferred tax assets | $ | 12,406 |  |  | $ | 252 |
Deferred tax liabilities: |  |  |
Revaluation on trading securities | $ | — |  |  | $ | 2,546 |
Fixed and Intangible Assets | — |  |  | 1,568 |
Subordinated debt | — |  |  | 523 |
Other liabilities | 388 |  |  | — |
Deferred tax liabilities | $ | 388 |  |  | $ | 4,637 |
Net deferred tax (liabilities)/assets | $ | 12,018 |  |  | $ | (4,385) |
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, 2022 |  | Year ended March 31, 2021 |  | Year ended March 31, 2020
Profit before tax at 21% | $ | 49,747 |  |  | $ | 36,335 |  |  | $ | 5,908 |
Global intangible low taxed income | 31,194 |  |  | 18,451 |  |  | 4,803 |
Gain recognized through additional paid in capital | 4,988 |  |  | — |  |  | — |
Stock based compensation | 3,090 |  |  | 348 |  |  | 551 |
Losses carried forward adjustment | — |  |  | — |  |  | (154) |
Other differences | — |  |  | — |  |  | 20 |
Provision for impairment losses | (19) |  |  | 187 |  |  | (295) |
Valuation allowance | (316) |  |  | (361) |  |  | 416 |
Non-taxable interest income | (659) |  |  | — |  |  | — |
Permanent differences | (2,883) |  |  | 24 |  |  | 793 |
Foreign tax credit | (16,200) |  |  | (10,155) |  |  | (3,503) |
Foreign tax rate differential | (18,213) |  |  | (10,487) |  |  | (2,938) |
Nontaxable gains | (25,204) |  |  | (4,244) |  |  | 401 |
Income tax provision | $ | 25,525 |  |  | $ | 30,098 |  |  | $ | 6,002 |
As of March 31, 2022 and 2021, income tax expense was comprised of the following:
| Year ended March 31, 2022 |  | Year ended March 31, 2021 |  | Year ended March 31, 2020
Current income tax charge | $ | 41,927 |  |  | $ | 27,386 |  |  | $ | 5,307 |
Deferred income tax charge | (16,402) |  |  | 2,712 |  |  | 695 |
Income tax provision | $ | 25,525 |  |  | $ | 30,098 |  |  | $ | 6,002 |
During the years ended March 31, 2022, 2021 and 2020, the Company realized net income before income tax of $236,894, $173,022 and $28,132, respectively. During the same periods, the Company's effective tax rate was equal to 10.8%, 17.4% and 21.3%, respectively. This decrease in income tax expense was primarily attributable to non-taxable gains on trading securities in Freedom KZ, Freedom Bank KZ, Freedom EU and Freedom Technologies. Tax loss carryforwards as of March 31, 2022, was $5,679 in Russia and Cyprus.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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