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

16. Income Taxes

 

The Company and its subsidiaries are subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled.

 

Cayman Islands

 

WF Holding is domiciled in the Cayman Islands and currently enjoys permanent income tax holidays; and accordingly, WF Holding is not subject to any income tax.

 

British Virgin Islands

 

Under the current tax laws of the British Virgin Islands, WF Venture is not subject to tax on income or capital gains.

 

Malaysia

 

For Win-Fung and RBSB, the income tax is calculated at 24% of the estimated assessable profits for the relevant year.

 

Hong Kong

 

GKI is subject to a Hong Kong profits tax of 16.5% on its activities conducted in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since the acquisition of GKI.

 

The components of profit (loss) before income tax expense are summarized as follows:

 

   Years Ended December 31, 
   2025   2024   2023 
Domestic (Cayman Islands)  $(1,788,371)  $(159,527)  $(31,133)
Foreign (Malaysia)   469,185    278,544    726,747 
Foreign (Hong Kong)   (1,924)   
-
    
-
 
Foreign (BVI)   (3,343,820)   
-
    
-
 
Total  $(4,664,930)  $119,017   $695,614 

The provision for income taxes consisted of the following:

 

   Years Ended December 31, 
   2025   2024   2023 
Current income tax expenses            
Domestic (Cayman Islands)  $
-
   $
-
   $
-
 
Foreign (Malaysia)   80,619    65,954    220,915 
Foreign (Hong Kong)   
-
    
-
    
-
 
Foreign (BVI)   
-
    
-
    
-
 
Total current income tax expense   80,619   $65,954   $220,915 
                
Deferred income tax benefits               
Domestic (Cayman Islands)   
-
    
-
    
-
 
Foreign (Malaysia)   4,594    (58,540)   (16,702)
Foreign (Hong Kong)   
-
    
-
    
-
 
Foreign (BVI)   
-
    
-
    
-
 
Total deferred income tax benefits   4,594    (58,540)   (16,702)
                
Total income tax expense  $85,213   $7,414   $204,213 

 

The following table presents income taxes paid, net of refunds, disaggregated by jurisdiction:

 

   Years Ended December 31, 
   2025   2024   2023 
Income taxes paid, net of refunds            
Domestic (Cayman Islands)  $
-
   $
-
   $
-
 
Foreign (Malaysia)   114,364    149,792    411,617 
Foreign (Hong Kong)   
-
    
-
    
-
 
Foreign (BVI)   
-
    
-
    
-
 
Total  $114,364   $149,792   $411,617 

 

Below is a reconciliation of the statutory tax rate to the effective tax rate after the adoption of ASU 2023-09:

 

   Years Ended December 31, 
   2025   2024   2023 
   Amount   Effective
Tax Rate		   Amount   Effective
Tax Rate		   Amount   Effective
Tax Rate		 
(Loss) income before income tax expense  $(4,664,930)   -   $119,017    -   $695,614    - 
Tax effect at the Malaysia corporate tax rates of 24%    (1,119,583)   24.00%   28,564    24.00%   166,947    24.00%
Tax effect of preferential tax rate   -    -    -    -    (9,873)   (1.42)%
Non-deductible expenditure   1,307,927    (28.04)%   75,535    63.47%   51,351    7.38%
Income not subject to tax   (30,813)   0.66%   (2,550)   (2.14)%   (2,559)   (0.37)%
Double tax deduction/ tax incentives   (1,673)   0.04%   (1,270)   (1.07)%   (1,653)   (0.24)%
Over provision in prior years   (70,645)   1.51%   (92,865)   (78.03)%   -    - 
Total income tax expense    $85,213    (1.83)%  $7,414    6.23%  $204,213    29.36%

 

The over provision of $70,645 in prior years was mainly due to the Company’s initial assumption that certain revenue was taxable upon receipt. It was subsequently confirmed that such revenue may be taxed based on its accounting recognition. Accordingly, the excess tax provision from prior years was reversed in the current year.

Deferred income tax results from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The effect of temporary differences that gave rise to net deferred tax assets and deferred tax liabilities as follows:

 

   At December 31, 
   2025   2024 
Allowance for credit losses  $(146,544)  $(131,080)
Accelerated tax depreciation   100,420    80,362 
   $(46,124)  $(50,718)