v3.25.4
Income Taxes
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12. Income Taxes

 

Hong Kong

 

In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000 (US$256,974), and 16.5% on any part of assessable profits exceeding that threshold.

 

For the year ended September 30, 2025, the Group incurred a tax loss and, as such, no current income tax expense is recognized. Instead, deferred tax assets are recognised, arising from temporary differences and unused tax losses. For the year ended September 30, 2024, the Group generated taxable profits and was subject to income tax in Hong Kong.

 

The components of the income tax expense (credit) are as follows as of September 30:

  Schedule of Components of Income Tax Expense Benefits

   2024   2025   2025 
   HK$   HK$   US$ 
Current               
Hong Kong   1,808,658    -    - 
                
Deferred               
Hong Kong   (286,226)   (3,266,625)   (419,029)
Provision for income taxes   1,522,432    (3,266,625)   (419,029)

 

The Company measures deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the corresponding tax bases of assets and liabilities, using the applicable tax rates.

 

Components of the Group’s deferred tax asset and liability are as follows as of September 30:

  Schedule of Deferred Tax Assets and Liabilities

   2024   2025   2025 
Deferred tax assets:  HK$   HK$   US$ 
Depreciation and amortization   450,409    398,147    51,157 
Tax losses   -    3,318,887    426,434 
Total deferred tax assets   450,409    3,717,034    477,591 
Less: valuation allowance   -    -    - 
Deferred tax assets, net of valuation allowance   450,409    3,717,034    477,591 
Deferred tax assets, net   450,409    3,717,034    477,591 

 

 

As of September 30, 2024, the Group have income taxes payable for HK$2,296,963 (approximately US$295,627). As of September 30, 2025, the Group have income taxes recoverable for HK$1,892,807 (approximately US$243,201).

 

The following table reconciles Hong Kong statutory rates to the Group’s effective tax:

 

   2023   2024   2025   2025 
   For the years ended September 30, 
   2023   2024   2025   2025 
   HK$   HK$   HK$   US$ 
Profit (loss) before income taxes   12,059,746    10,418,727    (24,375,553)   (3,126,795)
Tax at the statutory rate at 16.5%   16.50%   16.50%   16.50%   16.50%
Income taxes computed at Hong Kong Profits Tax rate   1,989,858    1,719,090    (4,021,966)   (515,921)
Reconciling items:                    
Tax effect of profit (loss) from entity not subject to income tax   -    -    728,548    93,455 
Tax effect of income that is not taxable*   (20,532)   (31,658)   (7,423)   (952)
Effect of two-tier tax rate   (165,000)   (165,000)   -      
Others   -    -    34,216    4,389 
Income tax expense (benefit)   1,804,326    1,522,432    (3,266,625)   (419,029)

 

*Income that is not taxable mainly consisted of the interest income and the government subsidies which are non-taxable under Hong Kong income tax law.

 

Uncertain tax positions

 

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of September 30, 2024, and September 30, 2025, the Group did not have any significant unrecognized uncertain tax positions. The Group did not incur any interest and penalties related to potential underpaid income taxes for the years ended September 30, 2024 and September 30, 2025. The Group also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from September 30, 2025.