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Income Taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

11. Income Taxes

 

The entities within the Group file separate tax returns in the respective tax jurisdictions in which they operate.

 

British Virgin Islands (“BVI”)

 

Under the current laws of the BVI, the Group’s subsidiaries incorporated in BVI are not subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective shareholders, no BVI withholding tax will be imposed.

 

Hong Kong, PRC

 

Our subsidiary, HK 3e Network, is a Hong Kong entity subject to the two-tier profits tax rates system, which was introduced to the Ordinance with effect from 1 April 2018.

 

Under the two-tier profit tax rates regime, the profits tax rate for the first HKD 2 million of assessable profits of a corporation will be subject to the lowered tax rate of 8.25% while the remaining assessable profits will be subject to the tax rate of 16.5%.

 

In respect of dividends paid to HK 3e Network by Guangzhou 3E Network and Guangzhou Sanyi Network, under Hong Kong’s Foreign-sourced Income Exemption regime effective from 1 January 2023, income arising in or derived from a territory outside Hong Kong (such as dividends) received by a Hong Kong entity which is a multinational enterprise entity (“MNE entity”) carrying on business in Hong Kong may be regarded as specified foreign-sourced income which will be deemed to be sourced from Hong Kong and chargeable to profits tax, subject to certain exemptions. In addition, payments of dividends from our Hong Kong subsidiary to its shareholder(s) are not subject to any Hong Kong withholding tax.

 

Mainland, PRC

 

The Group’s PRC subsidiaries are governed by the income tax law of the PRC and are subject to the PRC enterprise income tax (“EIT”). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises.

For the years ended June 30, 2025, 2024 and 2023, the income tax rate of the Group’s PRC subsidiaries is 25%.

 

   For the years ended
June 30,		 
   2025   2024   2023 
   US$   US$   US$ 
             
Current tax expense   431,139    114,958    1,767 
Deferred tax expense   -    -    - 
                
Income tax expenses   431,139    114,958    1,767 

 

A reconciliation of the income tax expense determined at the PRC statutory income tax rate to the Group’s actual income tax expense is as follows:

 

   For the years ended
June 30,		 
   2025   2024   2023 
   US$   US$   US$ 
             
Income before income tax expense   1,908,945    817,562    15,789 
PRC statutory income tax rate   25%   25%   25%
Income tax at PRC statutory income tax rate   477,236    204,390    3,947 
Difference due to preferential tax   (240,772)   (89,432)   (2,180)
Difference due to discontinue subsidiary   194,675    -    - 
Income tax expense     431,139    114,958    1,767 

  

For the years ended June 30, 2025, 2024, 2023, the Group has no deferred tax assets.

 

For the years ended June 30, 2025, 2024 and 2023, the Group did not have any material interest or penalties associated with tax positions. The Group did not have any significant unrecognized uncertain tax positions as of June 30, 2025, 2024 or 2023. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months.