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Taxes
 12 Months Ended
Jun. 30, 2025
Taxes [Abstract]  
TAXES

NOTE 13 – TAXES

 

Corporation Income Tax (“CIT”)

 

The Company is subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled.

 

Haoxi is incorporated in Cayman Islands as an offshore holding company and is not subject to tax on income or capital gain under the laws of Cayman Islands.

 

Haoxi HK is incorporated in Hong Kong as a holding company with no activities. Under the Hong Kong tax laws, an entity is not subject to income tax if no revenue is generated in Hong Kong.

 

Under the Enterprise Income Tax (“EIT”) Law of the PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% EIT rate, which WFOE and Haoxi BJ are subject to.

 

The provision for income tax consisted of the following:

 

   Years Ended June 30, 
   2025   2024   2023 
Current            
Cayman Islands  $
—
   $
—
   $
—
 
Hong Kong   
—
    
—
    
—
 
China   270,744    443,582    220,653 
                
Deferred               
Cayman Islands   
—
    
—
    
—
 
Hong Kong   
—
    
—
    
—
 
China   
—
    
—
    
—
 
Income tax provision  $270,744   $443,582   $220,653 

 

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

 

  

Years Ended June 30,

 
   2025   2024   2023 
PRC statutory tax rates (25%)   25.0%   25.0%   25.0%
Effect on tax rates in different tax jurisdiction   (8.5)%   (0)   (6.5)%
Effective tax rate   16.5%   25%   18.5%

 

Deferred tax assets and liabilities

 

Components of deferred tax assets and liabilities were as follows:

 

    As of June 30,  
    2025     2024     2023  
Net operating loss carry forwards   $ 142,115     $ 142,115     $ 142,115  
Deferred tax assets, gross     142,115       142,115       142,115  
Valuation allowance on net operating loss     (142,115 )     (142,115 )     (142,115 )
Deferred tax assets   $ —     $ —     $    

 

As of each reporting date, management considers evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, valuation allowance of $142,115 was recorded against the gross deferred tax asset balance as of June 30, 2023. The amount of the deferred tax asset is considered realizable because it is more likely than not that the Company will not generate sufficient future taxable income to utilize this portion of the net operating loss.

The tax payable consisted of the following:

 

    As of June 30,  
    2025     2024     2023  
VAT   $  369,260       366,720     $ 75,133  
Income tax      935,989       675,842       250,868  
Other tax      2,021       1,796       2,092  
Tax payable   $  1,307,270     $ 1,044,357     $ 328,093