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Income Tax
 12 Months Ended
Dec. 31, 2024
Income Tax [Abstract]  
Income tax
9.Income tax

 

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.

 

The Company and its subsidiary, Everbright International, are domiciled in the Cayman Islands and the British Virgin Islands respectively. Both companies currently enjoy permanent income tax holidays; accordingly, both companies do not accrue for income taxes.

 

The Company’s operating subsidiary, Metaverse incorporated in Hong Kong is subject to an income tax rate of 8.25% for first HK$2,000,000 assessable profits and 16.5% for the assessable profits thereafter.

 

   Years ended December 31, 
Provision for income tax  2024   2023 
Current        
Hong Kong  $151,155   $128,700 
           
Deferred          
Hong Kong   (13,765)   28,347 
Total  $137,390   $157,047 

 

Numerical reconciliation of income tax expenses to prima facie tax payable:

 

   Years ended December 31, 
   2024   2023 
Profit before income tax  $516,820   $1,082,610 
           
Tax effect at the Hong Kong profits tax rate of 16.5%  $85,275   $178,631 
Tax effect of preferential tax rate   (21,100)   (20,595)
Tax effect of non-assessable income   (153)   (605)
Tax effect of non-deductible expenses   73,560    
-
 
Tax effect of tax rebate   (192)   (384)
           
Total  $137,390   $157,047 

 

   Years ended December 31, 
Effective income tax rate (%)      2023 
Effective income tax rate – Hong Kong   26.58%   14.51%

There were no material unrecognized temporary differences and unsettled tax position.

 

The components of deferred tax assets their movements were as follows:

 

   Property, plant
and equipment		   Intangible
assets		   Total 
Balance as of January 1, 2023  $798   $27,882   $28,680 
                
Charged to statement of operations   144    28,203    28,347 
                
Balance as of December 31, 2023  $942   $56,085   $57,027 
                
Charged to statement of operations   86    (13,851)   (13,765)
                
Balance as of December 31, 2024  $1,028   $42,234   $43,262