Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 131

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 131
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 January 2023, and Chuangzhan is entitled to income tax exemption from 2021 to 2025 and will be subject to 15% income tax rate starting from January 2026. Xinjiang YSX’s subsidiary, Guangzhou YSX Network, is located in Guangzhou city of Guangdong province as a general taxpayer and is subject to 25% income tax rate. In addition, EIT grants preferential tax treatment to High and New Technology Enterprises (“ HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for their HNTE status every three years. EIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The Company’s other VIE, Xihang, was approved as a HNTE on December 20, 2021 and was entitled to a reduced income tax rate of 15% with a term of three years. Xihang’s HNTE certificate expired on December 20, 2024. Xihang filed an application with the local tax authority and is in the process of renewing the HNTE certificate as of the date of this annual report, which application is expected to be approved by the local tax authority by the end of August 2025.

As a result of the above, our corporate income taxes for the years ended March 31, 2025, 2024 and 2023 were reported at a blended reduced rate. Our effective income tax rate was 14.4%, 10.5% and 17.4% for the years ended March 31, 2025, 2024 and 2023, respectively. The impact of the tax holidays and exemptions noted above decreased the PRC corporate income taxes by $497,396, $413,403 and $406,785 for the years ended March 31, 2025, 2024 and 2023, respectively. The benefits of the tax holidays on net income per share (basic and diluted) were $0.02, $0.02 and $0.02 for the years ended March 31, 2025, 2024 and 2023, respectively.

Net Income

As a result of the foregoing, we reported a net income of $4,021,848 for the