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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
INCOME TAXES

Note 13 — INCOME TAXES

 

Income tax

 

Cayman Islands

 

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under current Cayman Islands law. In addition, upon payments of dividends by the Company entities to their shareholders, no Cayman Islands withholding tax will be imposed. Accordingly, the Company does not accrue for taxes.

 

British Virgin Islands (“BVI”)

 

Under the current laws of the BVI, the Company’s subsidiary incorporated in BVI is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the BVI company to its respective shareholders, no BVI withholding tax will be imposed.

 

Singapore

 

The Company’s main operating subsidiary is incorporated in Singapore and is subject to income taxes on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant tax laws and regulations of Singapore. The applicable tax rate is 17% in Singapore, with 75% of the first S$10,000 taxable income and 50% of the next S$190,000 taxable income exempted from income tax.

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

 

   For the Years Ended December 31, 
   2022   2023   2024   2024 
   S$   S$   S$   $ 
Income tax expenses                
Current income tax expenses   112,457    
—
    20,597    15,076 
Deferred income tax (benefit)/expenses   (1,402)   478,009    (186,547)   (136,544)
Income tax expenses (benefit)   111,055    478,009    (165,950)   (121,468)
                     
Income before tax   728,780    2,868,175    (1,197,088)   (876,218)
Singapore statutory income tax rate   17%   17%   17%   17%
Income tax expenses computed at Singapore statutory rate   123,893    487,590    (203,505)   (148,957)
                     
Reconciling items:                    
Non-deductible expenses   4,587    7,530    5,916    4,331 
Tax exemption and rebates   (17,425)   
—
    
—
    
—
 
Difference from the effect of tax rates in a foreign jurisdiction   
—
    
—
    31,639    23,158 
Others   
—
    (17,111)   
—
    
—
 
Income tax expenses (benefit)   111,055    478,009    (165,950)   (121,468)

 

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:

 

   As of December 31, 
   2023   2024   2024 
   S$   S$   $ 
Deferred tax assets            
Allowance for credit losses   
—
    10,369    7,590 
Lease liabilities   35,415    66,845    48,928 
Net operating loss carry-forwards   226,384    150,781    110,364 
Depreciation   
—
    7,421    5,432 
Deferred tax liabilities               
Right-of-use assets   (33,244)   (66,416)   (48,614)
Depreciation   (6,586)   
—
    
—
 
Unbilled revenue   (800,352)   (560,836)   (410,507)
Deferred tax liabilities, net   (578,383)   (391,836)   (286,807)

 

As the deferred tax assets and deferred tax liabilities are generated from the same entity, Springview (S), hence the deferred tax assets and deferred tax liabilities are eligible to net off with each other.