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Income tax
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income tax

 

16Income tax

 

The Company’s loss before income tax consists of:

 

   2025   2024 
   Years ended December 31, 
   2025   2024 
   US$   US$ 
         
Malaysia   1,427,275    1,126,832 
Indonesia   (445,886)   (723,350)
Hong Kong   (19,336,015)   (38,651,082)
Others   -    (859)
Loss before income tax   (18,354,626)   (38,248,459)

 

The Company is incorporated in Cayman Islands and is not subject to corporate income tax under its relevant regulations.

 

For the Company’s subsidiaries incorporated in Hong Kong, they are subject to a corporate tax rate of 16.5% on the assessable profits arising from Hong Kong.

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

For the Company’s subsidiaries incorporated in United States, they are subject to a corporate tax rate of 21% on the assessable profits arising from United States.

 

For the Company’s subsidiaries incorporated in Malaysia, they are subject to corporate tax rate on 24% on the assessable profits arising from Malaysia.

 

For the Company’s subsidiaries incorporated in Indonesia, they are subject to a corporate tax rate of 22% on the assessable profits arising from Indonesia.

 

For the Company’s subsidiary incorporated in Singapore, it is subject to a corporate tax rate of 17% on the assessable profits arising from Singapore. No provision for Singapore profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2025 and 2024.

 

For the Company’s subsidiary incorporated in United Kingdom, it is subject to a corporate tax rate of 19% on the assessable profits arising from United Kingdom. No provision for United Kingdom profits tax has been made in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2025 and 2024.

 

Income tax expense consists of:

 

   2025   2024 
   Years ended December 31, 
   2025   2024 
   US$   US$ 
         
Income tax expense   518,668    534,661 
Deferred income tax benefit   (369,734)   43,642 
Total income tax expense   148,934    578,303 

 

A reconciliation of the income tax expense to the amount computed by applying the current statutory tax rate to the income before income tax in the consolidated statements of operations and comprehensive loss is as follows:

 

   2025   2024 
   Years ended December 31, 
   2025   2024 
   US$   US$ 
         
Income before income tax   (18,354,626)   (38,248,459)
Tax calculated at Hong Kong profits tax rate   (3,028,513)   (6,310,993)
Effect of different tax rates applicable to different jurisdictions   945,404    6,683,940 
Income not subject to tax   (350,747)   (8,328,873)
Non-deductible expenses   2,177,744    7,273,262 
Change in valuation allowance   399,308    1,041,756 
Underprovision of current tax in the previous financial year   -    31,902 
Tax effect on deductible temporary differences   -    7,946 
Others   5,738    179,363 
Income tax   148,934    578,303 

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

The Company’s deferred tax assets and liabilities as of December 31, 2025 and 2024 are attributable to the following:

 

   2025   2024 
   December 31, 
   2025   2024 
   US$   US$ 
Deferred tax assets          
Tax losses carried forward   335,013    8,193,135 
Equipment   (95,456)   (82,885)
Accrued expenses   330,116    419,001 
Others   7,719    82,657 
Total deferred tax assets   577,392    8,611,908 
Valuation allowance   (345,310)   (8,269,086)
Total deferred tax assets   232,082    342,822 
           
Deferred tax liabilities          
Fixed assets          
Intangible assets   (507,141)   (876,875)
Others   (1,425)   (37)
Total deferred tax liabilities   (508,566)   (876,912)
           
Net deferred tax liabilities   (276,484)   (534,090)

 

As of December 31, 2025 and 2024, management has recorded a valuation allowance on certain deferred tax assets where management believes that after considering all of the available evidence, it is more likely than not that some portion or all will not be realized in the foreseeable future. The ultimate realization of deferred tax assets depends on the generation of future taxable income in which those temporary differences and carry forwards become deductible.

 

As of December 31, 2025 and 2024, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Hong Kong is US$1,101,536 and US$66,424 as of December 31, 2025 and 2024, respectively, which can be carried forward indefinitely.

 

As of December 31, 2025, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in The United States is US$223,357 as of December 31, 2025, respectively, which can be carried forward indefinitely.

 

As of December 31, 2024 and 2023, the accumulated tax losses of subsidiaries can be carried forward to offset against future taxable profits. The tax loss for the subsidiary incorporated in Singapore is US$89,125 and US$73,524 as of December 31, 2025 and 2024, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiary incorporated in United Kingdom is US$494,810 and US$523,676 as of December 31, 2025 and 2024, respectively, which can be carried forward indefinitely.

 

The tax loss in the subsidiaries incorporated in Indonesia is US$1,776,582 and US$2,099,326 as of December 31, 2025 and 2024, respectively, which will expire, if unused, in five years.

 

The tax loss in the subsidiaries incorporated in Malaysia is US$Nil and US$Nil as of December 31, 2025 and 2024, respectively.

 

 

CURRENC GROUP INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS