Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 282

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 282
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067 |   |     |                     |    1,162 |   |     |                 |     149 |   |
| Deferred tax liabilities, net, ending balance                                 |     |                      | (226,467 | ) |     |                     | (339,914 | ) |     |                 | (43,579 | ) |

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 six months ended June 30, 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-72 |

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 the position.

As of December 31, 2023 and June 30, 2024, the Company
did not have any significant unrecognized uncertain tax positions. The Company also did not accrue any liability, interest, or penalties
related to uncertain tax positions, as there were no positions where it was determined that an unfavourable outcome was probable.

The Company continues to monitor developments in
tax law and evaluates any changes in its tax positions on a quarterly basis. Should any uncertain tax positions arise in the future,
the Company will measure and record any potential liabilities in accordance with ASC 740.

14. BANK BORROWINGS

The following table presents