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INCOME TAX EXPENSES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAX EXPENSES

17. INCOME TAX EXPENSES

 

Caymans and BVIs

 

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

 

Singapore

 

The Company’s subsidiary, JCS-Echigo Pte. Ltd. and Hygieia Warewashing Pte. Ltd are considered Singapore tax resident enterprises under Singapore tax laws; accordingly, they are subject to enterprise income tax on their taxable income as determined under Singapore tax laws and accounting standards at a statutory tax rate of 17% (2021: 17%).

 

The income tax provision consists of the following components:

 

   2020   2021   2022 
  

For the years ended December 31,

 
   2020   2021   2022 
   SGD’000   SGD’000   SGD’000 
Income tax:               
Current year   500    -    289 
Under provision of prior years   34    37    - 
Current Income Tax Expense Benefit   534    37    289 
Deferred tax:               
Current year   84    (37)   (61)
Under provision of prior years   -    -    7 
Deferred Income Tax Expense Benefit   84    (37)   (54)
Income Tax Expense (Benefit)   618    -    235 

 

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2021: 17%) to profit before income tax as a result of the following differences:

 

   2020   2021   2022 
  

For the years ended December 31,

 
   2020   2021   2022 
   SGD’000   SGD’000   SGD’000 
Income before tax expenses:   2,345    2    1,427 
                
Tax at the domestic income tax rate   399    1    243 
Tax effect of expenses that are not deductible in determining taxable profit   391    6    27 
Under provision in prior years   34    37    7 
Tax effect of non-taxable incomes   (98)   (44)   (42)
Tax incentives   (110)   -    - 
Others   2    -    - 
                
Income Tax Expense (Benefit)   618    -    235 

 

As of December 31, 2022 and 2021, the one of the Company’s subsidiaries in Singapore, namely Hygieia Warewashing Pte Ltd had net operating loss carryforwards of approximately SGD147,000 and SGD751,000, respectively. As of December 31, 2022 and 2021, deferred tax assets from the net operating loss carryforwards amounted to SGD25,000 and SGD163,000, respectively, and the Company has provided a valuation allowance as it has concluded that it is more likely than not that these net operating losses would not be utilized in the future.