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Income Taxes
 12 Months Ended
Mar. 31, 2025
Income Taxes [Abstract]  
Income Taxes

12. Income Taxes

 

Cayman Islands

 

Under the current and applicable laws of the Cayman Islands, the Company and Top Solar are not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.

 

British Virgin Islands

 

Under the current and applicable laws of BVI, the Company’s BVI subsidiaries are not subject to tax on income or capital gains.

 

Hong Kong

 

ZYSL, ZYCL and Winrich are incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. For the Years Ended March 31, 2025, 2024 and 2023, Hong Kong profits tax is calculated in accordance with the two-tiered profits tax rates regime. The applicable tax rate for the first HKD 2 million of assessable profits is 8.25% and assessable profits above HKD 2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019. Before that, the applicable tax rate was 16.5% for corporations in Hong Kong. Under Hong Kong tax laws, ZYSL, ZYCL and Winrich are exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

 

Singapore

 

Top Fin and Top AM are incorporated in Singapore and are subject to Singapore Corporate Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. Top Fin and Top AM are subject to a flat rate of 17%.

 

Australia

 

Top 500 is incorporated in Australia and is subject to Australia Corporate Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Australian tax laws. Top 500 is subject to a reduced rate of 25% as a “small or medium business” company.

 

The current and deferred portions of the income tax benefits (expense) included in the consolidated statements of operations and comprehensive income (loss) as determined in accordance with FASB ASC 740 are as follows:

 

   For the Years Ended March 31, 
   2025   2024   2023 
Current income tax expense  $(146,104)  $63,692   $(31,520)
Deferred income tax expense   -    -    
 
 
   $(146,104)  $63,692   $(31,520)

A reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Company’s income tax expense is shown in the following table:

 

   For the Years Ended March 31, 
   2025   2024   2023 
Income tax benefits (expenses) at applicable statutory rate  $960,836   $(162,995)  $(565,828)
Income not subject to tax (2)   (712,770)   89,264    421,297 
Income tax of other jurisdictions (3)   29,142    
-
    30 
Nontaxable offshore profit   

-

    136,655    113,777 
Benefit on tax concession (note (1))   192    767    765 
Changes in valuation allowance   (423,504)   
-
    (1,561)
   $(146,104)  $63,692   $(31,520)

 

(1) The provision for Hong Kong Profits Tax for 2025 is calculated at 16.5% (2024 and 2023: 16.5%) of the estimated assessable profits for the year, taking into account a reduction granted by the Hong Kong SAR Government of 100% of the tax payable for the year of assessment 2024-25 subject to a maximum reduction of HK$1,500 for each business (2024: a maximum reduction of HK$3,000 was granted for the year of assessment 2023-24 and was taken into account in calculating the provision for 2024, 2023: a maximum reduction of HK$6,000 was granted for the year of assessment 2022-23 and was taken into account in calculating the provision for 2023).

 

(2) The Company also has entities domiciled in the British Virgin Islands, but such entities are not subject to income or capital gains taxes.

 

(3) Top Fin and Top AM were established in Singapore, which are subject to income tax rate of 17%, and Top 500 was established in Australia, which is subject to income rate of 25%.