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INCOME TAXES
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE – 14 INCOME TAXES

 

For the six months ended June 30, 2025 and 2024, the local (“Nevada”) and foreign components of profit (loss) before income taxes were comprised of the following:

 

   2025   2024 
   Six months ended
June 30,		 
   2025   2024 
Tax jurisdiction from:          
- Local  $—   $— 
- Foreign   —    567 
Profit (loss) before income taxes  $—   $567 

 

Reconciliation of statutory to effective tax rate:

 

   2025   2024 
  

Six months ended

June 30,

 
   2025   2024 
Profit (Loss) before tax  $457,378   $(443,922)
           
U.S. federal statutory tax rate (21%)   96,049    (93,224)
Foreign loss taxed at different rates   (23,880)   (6,455)
Non-deductible expenses   20,176    22,392 
Valuation allowance adjustments   (92,345)   77,854 
Income tax expense benefit  $—   $567 

 

The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operating in various countries are subject to taxes in the jurisdictions in which they operate, as follows:

 

United States

 

The Company is registered in the Nevada and is subject to the tax laws of United States.

 

As of June 30, 2025, no operating losses which can be carried forward to offset future taxable income.

 

Singapore

 

The Company’s subsidiary is registered in the Republic of Singapore and is subject to the tax laws of Singapore.

 

As of June 30, 2025, the operation in the Singapore incurred $636,115 of net operating gain. The Company has provided for a full tax effect allowance against the current and deferred tax expenses of $108,141.

 

 

Vietnam

 

The Company’s subsidiary operating in Vietnam is subject to the Vietnam Income Tax at a standard income tax rate of 20% during its tax year.

 

As of June 30, 2025, the operation in the Vietnam incurred $36,982 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2026, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $6,025 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

Indonesia

 

The Company’s subsidiary is registered in Indonesia and is subject to the tax laws of Indonesia at a standard income tax rate of 22% during its tax year.

 

As of June 30, 2025, the Company’s subsidiary operations in Indonesia incurred $64,990 of net operating gain. The Company has provided for a full tax effect allowance against the current and deferred tax expenses of $33,102.

 

China

 

The Company’s subsidiary is registered in China and is subject to the tax laws of the People’s Republic of China at a standard income tax rate of 20% during its tax year.

 

As of June 30, 2025, the Company’s subsidiary operations in China incurred $42,579 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $8,516 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

 

Malaysia

 

The Company’s subsidiary is registered in Malaysia and is subject to the Malaysia Income Tax at a standard income tax rate of 24% during its tax year.

 

As of June 30, 2025, the operation in the Malaysia incurred $3,934 of net operating gain. The Company has provided for a full tax effect allowance against the current and deferred tax expenses of $944.

 

Uncertain tax position

 

The Company is subject to taxation in the U.S. and various foreign jurisdictions. U.S. federal income tax returns for 2018 and after remaining open to examination. We and our subsidiaries are also subject to income tax in multiple foreign jurisdictions. Generally, foreign income tax returns after 2017 remain open to examination. No income tax returns are currently under examination. As of June 30, 2025 and December 31, 2024, the Company does not have any unrecognized tax benefits, and continues to monitor its current and prior tax positions for any changes. The Company recognizes penalties and interest related to unrecognized tax benefits as income tax expense. For the years ended June 30, 2025 and December 31, 2024, there were no penalties or interest recorded in income tax expense.

 

Income tax liability is calculated based on a separate return basis as if SOPA had filed separate tax returns before the completion of the Reorganization. Immediately following the Reorganization, the Company began to file separate tax returns and report the income tax based on the actual tax return of each legal entity under its respective tax regime.

 

 

Deferred tax assets and liabilities are recognized for future tax consequences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the tax year in which the differences are expected to reverse. Significant deferred tax assets and liabilities of the Company as of June 30, 2025 and December 31, 2024 consist of the following:

 

  

June 30,

2025

   December 31,
2024		 
           
Cumulative loss  $8,613,556   $8,156,178 
           
Deferred tax asset   92,345    88,913 
Valuation allowance adjustments   (92,345)   (88,913)
Post employment benefit   57,688    57,688 
Deferred tax assets, net  $57,688   $57,688 

 

The Internal Revenue Code includes a provision, referred to as Global Intangible Low-Taxed Income (“GILTI”), which provides for a 10.5% tax on certain income of controlled foreign corporations. We have elected to account for GILTI as a period cost if and when occurred, rather than recognizing deferred taxes for basis differences expected to reverse.