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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

9. Income Taxes

 

British Virgin Islands

 

Under the current laws of the British Virgin Islands, the Company is not subject to any income tax.

 

Hong Kong

 

Under the two-tiered profit tax rate regime of Hong Kong Profits Tax, the first HK$2,000,000 (approximately $258,000), of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2,000,000 will be taxed at 16.5%. For the years ended December 31, 2022 and 2021, the Company had $4,709,683 and $3,960,596, respectively, of income subject to the Hong Kong Profits Tax.

 

Malaysia

 

Malaysia Income Tax is calculated at 24% of the estimated assessable profits for the relevant year. For the years ended December 31, 2022 and 2021, the Company had $17,633 and $17,300, respectively, of income subject to the Malaysia Income Tax.

 

The income tax provision consists of the following:

 

   2022   2021 
Current:          
Hong Kong  $810,236   $646,845 
Malaysia   4,232    9,476 
Total  $814,468   $656,321 
           
Deferred   -    - 
Total  $814,468   $656,321 

 

The following is a reconciliation of the Company’s total income tax expense to the income before income taxes for the years ended December 31, 2022 and 2021, respectively.

   2022   2021 
Income before provision for income taxes  $4,499,468   $4,225,289 
Tax at the domestic income tax rate of 16.5%   742,412    697,173 
Tax effect of Hong Kong graduated rates   (21,290)   (21,290)
Foreign tax rate differentials   1,322    1,297 
Non-deductible expenses for tax purpose   37,595    7,333 
Non-taxable income   -    (48,157)
Prior year accrual   54,429    19,965 
Income tax expense  $814,468   $656,321