Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 222

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 222
---
13

Borrowing costs

Borrowing costs directly attributable
to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready
for their intended use or sale.

All other borrowing costs are recognized
in profit or loss in the period in which they are incurred.

Retirement benefit costs

Pursuant to the relevant regulations
of the PRC government, the Group’s subsidiaries located in the PRC participate in a local municipal government retirement benefits
scheme (the “ Scheme”), whereby they contribute a prescribed percentage of the basic salaries of their employees to the Scheme
to fund their retirement benefits. Once the Scheme has been funded via contributions by the Group’s participating subsidiaries,
the local municipal government takes responsibility for the retirement benefits obligations of all existing and future retired employees
of those subsidiaries located in the PRC; accordingly, the only obligation of the Group with respect to the Scheme is to pay the on-going
required contributions as long as the employees maintain employment with the Group. There are no provisions under the Scheme whereby forfeited
contributions may be used to reduce future contributions. These plans are considered defined contribution plans. The Group has no legal
or constructive obligations to pay further contributions after its payment of the fixed contributions into the pension schemes. Contributions
to pension schemes are recognized as an expense in the period in which the related service is performed.

Taxation

The tax expense for the period comprises
current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case the tax is also recognized in other comprehensive income or directly in equity,
respectively.

The current income tax charge is calculated
on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and
generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to
the tax authorities.

Deferred tax is recognized on temporary
differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible