Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 259

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 259
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 carry-forwards will expire between the calendar year 2026 through 2030. The management
believes that it is more likely than not that the Group will not realize these potential tax benefits as these operations will not generate
any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential
tax benefits based on the unutilized tax losses incurred. No deferred tax is recognized during the years ended June 30, 2025, 2024 and
2023.

The Group evaluates each uncertain
tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized
benefits associated with the tax positions. As of June 30, 2025, 2024 and 2023, the Group did not have any unrecognized uncertain tax
positions and the Group does not believe that its unrecognized tax benefits will change over the next twelve months. For the years ended
June 30, 2025, 2024 and 2023, the Group did not incur any interest and penalties related to potential underpaid income tax expenses. The
Group’s major tax jurisdiction is Hong Kong. Under relevant Hong Kong tax laws, tax case is normally subject to investigation by
the tax authority for up to 6 years of assessment prior to the current year of assessment, if in a case of fraud or willful evasion, then
the investigation can be extended to cover 10 years of assessment.

F-22

Note 9 - Related party balance and transactions

The following was a summary
of related party’s balance and transactions for the years ended June 30, 2025, 2024 and 2023:

Mr. But, Yiu Kong Kenneth
(“ Mr. Kenneth But”), an executive director of the Group.

Mr. Lao is an executive director
and Chief Executive Officer of the Group.

Balance with a related
party

                                      As of June 30,                                  
                                      2024                            2025      2025  
                                      HKD                             HKD       US$   
 ──────────────────────────────────────────────────────────────────────────────────────
  Prepayment to a related party:                                                      
  Nebula 360 Services Limited         $                   78,086      $         $     

Transactions with related
parties

                                                                                                                                    For the years ended June 30,                                              
                                                                                        Nature of                                   2023                              2024                  2025              
  Name of