Company: KPEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010699
Chunk: 58

Company: Kun Peng International Ltd.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 58
---
  
     94,590 
  
    Technical service revenue 
     -  
     -  
     -  
     - 
  
    Commissions 
     -  
     -  
     -  
     - 
  
    Training 
     -  
     51  
     -  
     20,357 
  
    Total 
    $98,605  
    $99,456  
    $154,288  
    $248,383 
  
    Cost of revenue 
    $98,605  
     99,456  
    $154,288  
     248,383 

NOTE 13- INCOME TAXES

The Company accounts for income
taxes pursuant to the accounting standards that require the recognition of deferred tax assets and liabilities for both the expected impact
of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to
be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require the establishment of a valuation
allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries file separate income tax returns.

United States

Kun Peng International Limited
is incorporated in the State of Nevada and is subject to United States federal income tax. No provision for income taxes in the U.S. has
been made as the Company has no U.S. taxable income for the six months ended March 31, 2025 and 2024.

British Virgin Islands

KP International Holding is a
holding company organized as an International Business Company under the laws of the British Virgin Islands (“BVI”), and its
principal operating subsidiaries are organized under the laws of Hong Kong and the laws of the PRC. KP International and its subsidiaries
are not subject to income taxes in the BVI.

Hong Kong

The two-tier profits tax rates
system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (“the Ordinance”) of Hong Kong and became
effective for the assessment year 2018/2019. Under the two-tier profits tax rates regime, the profits tax rate for the first $0.26 million
(HKD 2 million) of assessable profits of a corporation will be subject to a lowered tax rate of 8.25%, while the remaining assessable
profits will be subject to the legacy tax rate of