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Income tax

12 Months Ended

Dec. 31, 2024

Notes and other explanatory information [abstract]

9. Income tax

For the years ended December 31, 2024, 2023 and 2022, under the two-tiered profits tax rates regime in Hong Kong, the first HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%. Provision for Taiwan Corporate Income Tax has been made at 20% on the estimated assessable profits.

MasterBeef Group and its subsidiaries

Notes to the Consolidated Financial Statements (Continued)

December 31, 2024, 2023 and 2022

9. Income tax (continued)

Details of income tax are as follows:-

Schedule of income tax

	2024			2024			2023			2022
	US$			HK$			HK$			HK$

Current tax – Hong Kong
- current year provision		968,491			7,522,946			6,407,506			6,113,619
- prior year (over)/under provision		(1,278	)		(9,923	)		(1,049	)		48,364
Current tax – Taiwan		743			5,775			-			29,431
Total current tax		967,956			7,518,798			6,406,457			6,191,414
Deferred tax (Note 14)		(618,598	)		(4,805,091	)		1,251,531			(1,811,065	)

Total tax expenses for the year		349,358			2,713,707			7,657,988			4,380,349

A reconciliation of the tax expense applicable to profit/(loss) before tax at the statutory rates for the jurisdictions or countries in which the Group and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates is as follows:-

	2024			2024			2023			2022
	US$			HK$			HK$			HK$

Profit/(loss) before tax		4,584,903			35,614,151			(29,788,123	)		37,789,702

Tax at applicable rate		742,371			5,766,512			(5,018,726	)		6,126,766
Income not subject to tax		(1,434,439	)		(11,142,285	)		(177,009	)		(2,082,326	)
Non-deductible expenses		323,638			2,513,924			4,613,617			316,177
Income tax exemption and rebate		(1,351	)		(10,500	)		(30,000	)		(42,000	)
Tax effect of deductible temporary differences not recognized		171,424			1,331,573			4,213,670			512,372
Utilisation of previously unrecognised tax losses		(50,855	)		(395,030	)		(1,052,220	)		(936,952	)
(Over)/ under provision for previous year		(1,278	)		(9,923	)		(1,049	)		48,364
Difference in tax rate in different countries		743			5,775			-			5,176
Tax losses not recognised		599,105			4,653,661			5,146,140			431,755
Others		-			-			(36,435	)		1,017

Tax charge at the group’s effective rate		349,358			2,713,707			7,657,988			4,380,349

Unrecognised tax losses

Deferred income tax assets are recognised for tax losses carried forward to the extent that recognised of the related tax benefits through future taxable profits is probable. The Group have the unrecognised tax losses of approximately HK$33,355,000 (2023: HK$38,515,000 and 2022: 7,326,000) at the reporting date which can be carried forward and used to offset against future taxable income subject to meeting certain statutory requirements. The tax losses have no expiry date. In the opinion of the directors, no deferred tax assets have been recognised due to unpredictability of future profit streams.

MasterBeef Group and its subsidiaries

Notes to the Consolidated Financial Statements (Continued)

December 31, 2024, 2023 and 2022