Company: MEGL
Filing Date: 2025-05-09
Form Type: F-1
Source: 0001641172-25-009448
Chunk: 186

Company: Magic Empire Global Ltd
Filing Date: 2025-05-09
Form: F-1
Chunk 186
---
141,612 | ) |
| Increase in contract liabilities as a result                                                                 
 of billings in advance of performance obligation under contracts                                             |     |      |    600,000 |   |     |      |  1,400,000 |   |     |      |  180,233 |   |
| Balance at end of the year                                                                                   
 ended December 31                                                                                            |     |      |  1,100,000 |   |     |      |  1,400,000 |   |     |      |  180,233 |   |

10. INCOME TAX

British Virgin Islands

The Company is incorporated in the British Virgin Islands and is not subject to taxation. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed.

Hong Kong

Entities incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5% for taxable income earned in Hong Kong before April 1, 2018. Starting from the financial year commencing on April 1, 2018, the two-tiered profits tax regime took effect, under which the tax rate is 8.25% for assessable profits on the first HK$2 million and 16.5% for any assessable profits in excess of HK$2 million.

The Group’s Hong Kong subsidiaries are subject to Hong Kong profits tax on their taxable income as reported in their statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. For these subsidiaries, the first HK$2 million of assessable profits are taxed at 8.25% and the remaining assessable profits are taxed at 16.5%.

| (a) | Taxation                               
 in the statement of income represents: |

|                                            |     | 2023 |   |     | 2024 |   |     | 2024 |   |
|                                            |     |  HK$ |   |     |  HK$ |   |     |  US$ |   |
| Hong Kong profits tax provision (benefits) 
 for the year:                              |     |      |   |     |      |   |     |      |   |
| Current                                    |     |      | — |     |      | — |     |      | — |
| Deferred                                   |     |      | — |     |      | — |     |      | — |
|                                            |     |      | — |     |      | — |