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INCOME TAX
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAX

11. INCOME TAX

 

Pursuant to the current rules and regulations, the Cayman Islands and the BVI currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. Therefore, the Company is not subject to any income tax in the Cayman Islands or the BVI.

 

The Company is subject to Hong Kong profits tax at a rate of 16.5% on their taxable income generated from operations in Hong Kong before April 1, 2018. Starting from the financial year commencing on April 1, 2018, the two-tiered profits tax regime took effect, under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million.

 

Composition of income tax expenses

 

The following table sets forth current and deferred portion of income tax expenses:

 

   2023   2024         
   Year ended March 31,  
   2023   2024    2025  
   USD   USD    USD  
                 
Current income tax expenses   132,634    178,029      24,109  
Deferred income tax expense (recovery)   87,010    68,580      (143,400 )
Income tax expense (recovery)   219,644    246,609      (119,291 )

 

Reconciliation between the income tax expenses computed by applying the Hong Kong enterprise tax rate to income before income taxes and actual provision were as follows:

 

   2023   2024         
   Year ended March 31,  
   2023   2024    2025  
   USD   USD    USD  
                 
(Loss) before income tax - Cayman Island and BVI entities     -       (2,805)       (6,293,726)  
Income (loss) before income tax - Hong Kong entity     1,386,904       1,340,699       (806,633)  
Tax expenses at the Cayman Islands statutory income tax rate   -    -      -
                   
Tax effect of rate differences in various jurisdictions   228,839    220,752      (133,095 )
Tax effect of provision for expected credit loss   32,895    (3,716)     114,945  
Tax effect of depreciation allowance   (107,177)   (61,541)     34,595  
Tax effect of non-deductible expenditure   -    44,073      29,009  
Tax effect of taxable temporary difference   87,010    68,580     

(143,400

 )
Tax reduction allowed by Hong Kong government   (21,923)   (21,539)    

(21,345

 )
Income tax expense (recovery)   219,644    246,609      (119,291 )

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Deferred tax assets   33,951    148,897 
Deferred tax liabilities   (445,125)   (416,671)
Deferred tax liabilities, net   (411,174)   (267,774)

 

 

The significant components of the Company’s deferred tax assets and liabilities are as follows:

 

   2023   2024 
   As of March 31, 
   2024   2025 
   USD   USD 
         
Deferred tax assets:          
Provision of credit loss   33,951    148,897 
Total deferred tax assets   33,951    148,897 
Deferred tax liabilities:          
Property, plant and equipment   (30,383)   (10,106)
Right-of-use assets – finance lease   (414,742)   (406,565)
Total deferred tax liabilities   (445,125)   (416,671)
Net deferred tax liabilities   (411,174)   (267,774)

 

As of March 31, 2024 and 2025, the Company had no unrecognized tax benefit.