Company: CHOW
Filing Date: 2025-05-29
Form Type: F-1/A
Source: 0001641172-25-012773
Chunk: 213

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-05-29
Form: F-1/A
Chunk 213
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     |                 |          |   |     |      |          |   |     |             |         |   |
| Accelerated                                                            
 tax depreciation                                                       |     |                 |  (94,833 | ) |     |      |  (83,788 | ) |     |             | (10,742 | ) |
| (Reversal                                                              
 of allowance) / Allowance for the credit losses on accounts receivable |     |                 |  (57,578 | ) |     |      |   83,715 |   |     |             |  10,733 |   |
| Allowance                                                              
 for the credit losses on amount due from related companies             |     |                 |    1,067 |   |     |      |     (990 | ) |     |             |    (127 | ) |
| Deferred                                                               
 tax liabilities, net, ending balance                                   |     |                 | (226,467 | ) |     |      | (227,530 | ) |     |             | (29,170 | ) |

Realization of Deferred Tax Assets

The realization of the net deferred tax assets is dependent upon several factors, including future reversals of existing taxable temporary differences and the generation of adequate future taxable income. The Company evaluates the potential realization of deferred tax assets on an entity-by-entity basis, considering both positive and negative evidence.

The Company assesses deferred tax assets under the “more-likely-than-not” criteria, based on recurring profitability and the expected availability of future taxable income to offset temporary differences and tax loss carry forwards. Tax loss carry forwards are assessed with respect to their expiration periods and the probability of future taxable income sufficient to utilize these losses.

For the years ended December 31, 2023, and 2024, the Company did not recognize any valuation allowance as management determined that it is more likely than not that the Company will realize the benefits of its deferred tax assets due to recurring profits. The assessment considered historical performance, future profitability projections, and tax planning strategies.

| F-37 |

Uncertain Tax Positions

In accordance with ASC 740-10, the Company evaluates each uncertain tax position based on its technical merits, and measures any unrecognized benefits associated with tax positions. Each position is reviewed individually, considering past audits, interpretations of tax law, and developments in tax regulations. The Company assesses whether it is more likely than not that a tax position will be sustained upon examination by the relevant tax authorities, based solely on the technical merits of