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Income tax
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
Income tax

 

26.Income tax

 

  a) Components of income tax (credit) expense:

 

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Current income tax:          
Current income tax on profits for the period  $13,208   $3 
Tax on unappropriated retained earnings   -    1,377 
Prior year income tax under estimation   519    19,588 
Total current income tax   13,727    20,968 
Deferred income tax:          
Origination and reversal of temporary differences   (8,215)   (404,016)
Income tax (credit) expense  $5,512   $(383,048)

  

Tax (credit) expenses were computed based on the rates applicable in the respective countries where the Group entities operate.

 

 

b)Reconciliation between income tax (credit) expense and accounting profit:

 

Reconciliation between income tax expense and accounting profit        
   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Tax calculated based on profit before tax and statutory tax rate  $11,467   $28,055 
Effects from adjustments based on tax regulation   (7,182)   - 
Change in assessment of realization of deferred tax assets   -    (432,068)
Prior year income tax under estimation   519    19,588 
Others   708    - 
Tax on unappropriated retained earnings   -    1,377 
Income tax (credit) expense  $5,512   $(383,048)

  

  

c)Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

 

   2024 
   January 1   Recognized
in profit or loss		   Effect of foreign exchange rate changes   December 31 
Deferred tax assets                    
Allowance for bad debts  $3,085   $(2,939)  $(146)  $- 
Loss on inventories   467    2,202    (32)   2,637 
Unused vacation bonus   3,741    1,244    (194)   4,791 
unused tax losses   432,068    (711)   (4,985)   426,372 
  $439,361   $(204)  $(5,357)  $433,800 
                     
Deferred tax liabilities                    
Unrealised exchange gain  $(20,405)  $8,419   $1,004   $(10,982)

 

   2023 
   January 1   Effects from disposal of investments   Recognized
in profit or loss		   December 31 
Deferred tax assets                    
Allowance for bad debts  $72,530   $(69,490)  $45   $3,085 
Loss on inventories   319,368    (311,427)   (7,474)   467 
Unused vacation bonus   4,445    (59)   (645)   3,741 
Unrealize exchange losses   2,978    (2,978)   -    - 
unused tax losses   -    -    432,068    432,068 
   $399,321   $(383,954)  $423,994   $439,361 
                     
Deferred tax liabilities                    
 Unrealized exchange gain  $(7,501)  $7,074   $(19,978)  $(20,405)

 

d)Tax losses incurrence and expiration date, deferred tax assets filed and unused amounts, are as follows:

 

2024
Year incurred  Amount filed   Unused amount   Expiry year
2019  $329,916   $273,938   no limit
2021   21,873    21,873   no limit
2023   24,507    24,507   no limit
2023   106,054    106,054   2033 (Unapproved)
   $482,350   $426,372    

  

 

2023
Year incurred  Amount filed   Unused amount   Expiry year
2019  $329,329   $278,255   no limit
2021   21,834    21,834   no limit
2023   22,191    22,191   no limit
2023   109,788    109,788   2033 (Unapproved)
   $483,142   $432,068    

  

  e) The Company’s foreign subsidiaries file income tax returns in the countries where their operations are located. Recent income tax returns were submitted in Taiwan (2023), Hong Kong (2023), and China (2023).
     
  f) The Group principally operates business in Taiwan, Hong Kong and China. The tax rate for above countries was 20%, 16.5% and 25%, respectively.