Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 59

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 59
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 16.5%.

KP (Hong Kong) did not earn any
income that was derived in Hong Kong for the six months ended March 31, 2025 and 2024, and, therefore, KP (Hong Kong) were not subject
to Hong Kong profits tax for the periods reported.

Since the two-tier profit tax
rates regime is tentative, we applied the original profits tax rate, 16.5%, for the calculation of deferred taxes for our subsidiaries
in Hong Kong.

PRC

The PRC’s statutory income
tax rate is 25%. The Company’s subsidiaries and VIE registered in the PRC are subject to the income tax rate of 25%, unless otherwise
specified.

     33 

Income tax expense was comprised
of the following:

 SCHEDULE
OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT

    2025  
    2024 

    Six Months Ended March 31, 

    2025  
    2024 
  
    Current 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     13,364 
  
    Total current 
     -  
     13,364 

    Deferred 

    Federal 
     -  
     - 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 
  
    Total deferred 
     -  
     - 

    Total income tax expense 
    $-  
    $13,364 

A reconciliation between the Company’s
actual provision for income taxes and the provision at the statutory rate is as follow:

 SCHEDULE
OF RECONCILIATION OF PROVISION OF INCOME TAX

    2025  
    2024 

    Six Months Ended March 31, 

    2025  
    2024 
  
    Loss before income tax expense 
    $(843,884) 
    $(1,118,457)
  
    Computed tax expense (benefit) with statutory tax rate 
     21.0% 
     21.0%
  
    Impact of different tax rates in other jurisdictions 
     3.2% 
     3.6%
  
    Tax effect of non-deductible expenses 
     0.3