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INCOME TAXES
 12 Months Ended
Sep. 30, 2024
INCOME TAXES  
INCOME TAXES

18.         INCOME TAXES

Agritech and its subsidiary, State Harvest are incorporated in the British Virgin Islands and are exempted from the income tax under the laws of the British Virgin Islands. State Harvest’s subsidiaries and State Harvest’s variable interest entity, Beijing Origin and its majority owned subsidiaries (together, the “PRC entities”) were incorporated in the PRC and governed by the PRC laws.

The applicable tax rate of the PRC Enterprise Income Tax (“EIT”) was changed from 33% to 25% on January 1, 2008, according to the Corporate Income Tax Law. The preferential tax rate previously enjoyed by the PRC entities is gradually transitioned to the new standard rate of 25% over a five-year transitional period. In addition, article 28 of the new tax law stated that the income tax rate of a “high technology” company (high-tech status) is to remain at 15%.

The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Until September 30, 2024, the management considered that the Company had no uncertain tax positions affected its consolidated financial position. The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities and the major one is the China tax authority. The open tax years for examinations in China are 5 years.

The principal components of the deferred income tax assets are as follows:

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​

​

​

​

​

​

​

September 30, 

​

​

2023

​

2024

​

    

RMB

    

RMB

Non-current deferred tax assets:

 

  

 

  

Net operating loss carry forward

 

40,621

 

33,358

Impairment loss

 

35,119

 

35,215

Others

 

18,933

 

21,360

​

​

​

​

​

Non-current deferred income tax assets

 

94,673

 

89,933

Valuation allowances

 

(94,673)

 

(89,933)

​

​

​

​

​

Net non-current deferred income tax assets

 

—

 

—

​

The Company did not have any significant temporary differences relating to deferred tax liabilities as of September 30, 2023 and 2024.

A significant portion of the deferred tax assets recognized relates to net operating loss and credit carry forwards. The Company operates through the PRC entities and the valuation allowance is considered on each individual basis.

Reconciliation between total income tax expenses and the amount computed by applying the statutory income tax rate to income before taxes is as follows:

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​

​

​

​

​

​

​

Year ended

​

​

September 30, 

​

    

2023

    

2024

​

​

%  

​

%

Statutory rate

 

25

 

25

Effect of preferential tax treatment

 

—

 

—

Change in valuation allowance

 

(25)

 

(25)

Over provision in prior year

 

—

 

—

​

​

​

​

​

Effective income tax rate

 

—

 

—

​