Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 252

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 252
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 of temporary differences arising from differences between the carrying amount of assets and liabilities in
the consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable
temporary differences. Deferred tax assets are recognized to the extent that it is more likely than not that taxable income will be utilized
with prior net operating loss carried forwards using tax rates that are expected to apply to the period when the asset is realized or
the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or
charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be utilized. Current income taxes are provided for in accordance
with the laws of the relevant tax authorities.

An uncertain tax position is recognized as a benefit
only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized
on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and
interest were incurred related to underpayment of income tax for the years ended March 31, 2024 and 2023.

The Company recognizes interest and penalties related
to unrecognized tax benefits, if any, on the other expense line in the accompanying consolidated statement of income. Accrued interest
and penalties are included on the other payables and accrued liabilities line in the consolidated balance sheets.

The Company conducts much of its business activities
in Singapore, Malaysia, and Hong Kong and is subject to taxation in these jurisdictions. As a result of its business activities, the Company’s
subsidiaries file separate tax returns that are subject to examination by the foreign tax authorities. As of March 31, 2024, the
tax returns for the Company’s Singapore entities from 2021 through 2024 remain open for statutory examination by the Singapore tax
authorities. Similarly, as of March 31, 2024, the tax returns for the Company’s Hong Kong entities from 2019 through 2024 remain
open for statutory examination by the tax authorities in Hong Kong, respectively. In addition, as of March 31, 2024, the tax returns
for the Company’s Malaysia entity