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Income Taxes
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Income Taxes

11. Income Taxes

 

Cayman Islands and British Virgin Islands

 

Under the current laws of the Cayman Islands and the British Virgin Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands and BVI withholding tax will be imposed.

 

Singapore

 

In accordance with the relevant tax laws and regulations of Singapore, a company registered in Singapore is subject to income taxes at a flat rate of 17%.

 

   For the six months ended June 30, 
  

2023

SGD

  

2024

SGD

  

2024

USD

 
(Loss) income before provision for income taxes is attributable to the following geographic locations:               
Singapore   (499,557)   103,697    76,736 
Foreign   -    -    - 
Total (loss) income before income taxes   (499,557)   103,697    76,736 

 

The following table reconciles Singapore statutory rates to the Company’s effective tax:

 

   For the six months ended 
   June 30, 2023   June 30, 2024   June 30, 2024 
   SGD   SGD   USD 
(Loss) income before income taxes   (499,557)   103,697    76,736 
Singapore statutory income tax rate   17%   17%   17%
Non-deductible depreciation   0%   13%   13%
Non-deductible professional fees   -0%   59%   59%
Other non-deductible expenses   -24%   2%   2%
Tax rebate and exemption   0%   -9%   -9%
Effective tax rate   -7%   82%   82%

 

The Company measures deferred tax assets and liabilities based on the difference between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax asset and liability are as follows:

 

Deferred tax assets as below,

 

   December 31, 2023   June 30, 2024   June 30, 2024 
   SGD   SGD   USD 
Deferred tax assets:               
Bad debt provision   270,556    278,514    206,100 
Lease liabilities   4,726    183,711    135,946 
Total deferred tax assets   275,282    462,225    342,046 
                
Deferred tax liabilities:               
Right-of-use assets   (7,069)   (177,838)   (131,600)
Total deferred tax liabilities   (7,069)   (177,838)   (131,600)
Net deferred tax assets   268,213    284,387    210,446 

 

 

FBS GLOBAL LIMITED

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

Uncertain tax positions

 

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2023 and June 30, 2024, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income taxes for the six months ended June 30, 2023 and 2024. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from June 30, 2024.

 

11. Income Taxes

 

Cayman Islands and British Virgin Islands

 

Under the current laws of the Cayman Islands and the British Virgin Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands and BVI withholding tax will be imposed.

 

Singapore

 

In accordance with the relevant tax laws and regulations of Singapore, a company registered in Singapore is subject to income taxes at a flat rate of 17%.

 

   For the years ended December 31, 
  

2022

SGD

  

2023

SGD

  

2023

USD

 
Income before provision for income taxes is attributable to the following geographic locations:               
Singapore   210,917    (33,313)   (24,651)
Foreign   -    -    - 
Total income before income taxes   210,917    (33,313)   (24,651)

 

The following table reconciles Singapore statutory rates to the Company’s effective tax:

 

Schedule of Reconciles Singapore Statutory Rates 

   For the years ended December 31, 
   2022
SGD		   2023
SGD		   2023
USD		 
Profit before income taxes   210,917    (33,313)   (24,651)
Singapore statutory income tax rate   17%   17%   17%
                
Non-deductible depreciation   9%   -70%   -70%
Non-deductible professional fees   62%   -467%   -467%
Other non-deductible expenses   5%   -39%   -39%
Tax rebate and exemption   -26%   673%   673%
Effective tax rate   67%   114%   114%

 

The Company measures deferred tax assets and liabilities based on the difference between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Components of the Company’s deferred tax asset and liability are as follows:

 

Deferred tax assets as of December 31,

 

   2022
SGD		   2023
SGD		   2023
USD		 
Bad debt provision   276,791    270,556    200,212 
Lease liabilities   7,562    4,726    3,497 
Total deferred tax assets   284,353    275,282    203,709 
Deferred tax liabilities:               
Right-of-use assets   (11,575)   (7,069)   (5,231)
Total deferred tax liabilities   (11,575)   (7,069)   (5,231)
Net deferred tax asset:   272,778    268,213    198,478 

 

 

FBS GLOBAL LIMITED

 

Notes to Consolidated Financial Statements

 

Uncertain tax positions

 

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income taxes for the years ended December 31, 2022 and 2023. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2023.

 

The tax years ended December 31, 2019 through 2022 for the Group’s subsidiary in the Singapore is generally subject to examination by the Singapore tax authorities.