Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 115

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 115
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,152 for
the year ended March 31, 2025, which increased by $104,535 or 73.8% from $141,617 for the year ended March 31, 2024. The increase in
provision was mainly attributable to increase in non-deductible expenses for the year ended March 31, 2025. We were subject to income
taxes on entity basis on income derived from the location in which each entity is domiciled.

The Company was incorporated in the Cayman Islands
as an offshore holding company and is not subject to tax on income or capital gain under the laws of the Cayman Islands.

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Living Global was incorporated in the British
Virgin Islands as an offshore holding company and is currently exempted from income and corporate tax under the current laws of the British
Virgin Islands. In addition, the British Virgin Islands does not levy capital gains tax on it.

Under the two-tiered profits tax rates regime
in Hong Kong, from year of assessment of 2018/2019 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up
to HKD2,000,000, and 16.5% on any part of assessable profits over HKD2,000,000. Under Hong Kong tax laws, Living Homeopathy Hong
Kong is exempted from income tax on its foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of
dividends.

The table below sets forth the breakdown of provision
for income taxes for the years indicated.

|                              |     | For the years ended 
 March 31,           |    2025 |     |   |    2024 |
|:-----------------------------|:----|:--------------------|--------:|:----|:--|--------:|
| Current income tax provision |     | $                   | 217,396 |     | $ | 139,634 |
| Deferred income tax          |     |                     |  28,756 |     |   |   1,983 |
| Total income taxes expenses  |     | $                   | 246,152 |     | $ | 141,617 |

We generated substantially all of our taxable
income in Hong Kong and no taxable income. The deferred tax assets mainly represented temporary differences arising from acceleration
of depreciation on property and equipment and impairment for inventories. Our effective income tax rate was 23.3