Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 404

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 8
Chunk 404
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 restrict these two entities
from transferring funds to the Company in the form of dividends, loans and advances. As of September 30, 2024, and 2023, the Company
had negative net assets which included common stock, additional paid-in capital, subscription receivable, accumulated deficit and
foreign exchange translation adjustment of its subsidiaries in BVI, Hong Kong and the PRC and the VIE that are included in the
Company’s consolidated financial statements. As of September 30, 2024, King Eagle (China), King Eagle (Tianjin) and KP Tian Yu
incurred negative assets in the amount of $1,327,000, $2,539,081 and $962, respectively. As of September 30, 2023, King Eagle
(China), King Eagle (Tianjin) and KP Tian Yu incurred negative assets in the amount of $1,080,228, $2,069,494 and $611,
respectively. Accordingly, the Company did not accrue statutory reserve funds as of September 30, 2024 and 2023.

NOTE
12- INCOME TAXES

The
Company accounts for income taxes pursuant to the accounting standards that requires 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 the 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 years ended September 30, 2024, and 2023.

British
Virgin Islands

KP
International Holding is a holding corporation 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