Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 110

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 110
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 year ended March 31, 2023. The decrease in provision was mainly attributable to decrease in income before income taxes comparing the two fiscal years. We were subject to income taxes on entity basis on income derived from the location in which each entity is domiciled.

Living Int’l 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.

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 2019/2020 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,           |    2024 |     |   |    2023 |
|:-----------------------------|:----|:--------------|--------:|:----|:--|--------:|
| Current income tax provision |     | $             | 139,634 |     | $ | 199,989 |
| Deferred income tax          |     |               |   1,983 |     |   |   5,196 |
| Total income taxes expenses  |     | $             | 141,617 |     | $ | 205,185 |

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 15.8% and 15.4% for the years ended March 31, 2024 and 2023, respectively. The slightly increase in our effective income tax rate was due to (i) non-deductible expense relating to unqualified donation contributing 0.6% increase in effective income tax rate.

Net