Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 114

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 3
Chunk 114
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 proprietorship business-the other entity is the same person carrying
on another sole proprietorship business.

    F-41

Since
KP (China) and KP (Hong Kong) are wholly owned and under the control of KP International Holding, these entities are connected entities.
Under the Ordinance, it is an entity’s election to nominate the entity that will be subject to the two-tier profits tax rates on
its profits tax return. The election is irrevocable. The Company elected KP (Hong Kong) to be subject to the two-tier profits tax rates.
KP (China) and KP (Hong Kong) did not earn any income that was derived in Hong Kong for years ended September 30, 2024 and 2023 and therefore,
KP (China) and KP (Hong Kong) were not subject to Hong Kong profits tax for the periods reported.

Since
the two-tier profit tax rates regime is tentative, we applied the original profits tax rate, 16.5%, for the calculation of deferred taxes
for our subsidiaries in Hong Kong.

PRC

The
PRC’s statutory income tax rate is 25%. The Company’s subsidiaries and VIE registered in the PRC are subject to income tax
rate of 25%, unless otherwise specified.

Income
tax expense was comprised of the following:

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT

    2024  
    2023 

    September 30 

    2024  
    2023 
  
    Current 
    $  
    $             
  
    Federal 
     -  
     - 
  
    State 
     -  
     - 
  
    Foreign 
     2,487  
     - 
  
    Total current 
     2,487  
     - 

    Deferred 

    Federal 
     -  
     - 
  
    State 
     -  
     - 
  
    Foreign 
     -  
     - 
  
    Total deferred 
     -  
     - 

    Total income tax expense 
    $2,487  
    $- 

A
reconciliation between the Company’s actual provision for income taxes and the provision at the statutory rate is as follow:

SCHEDULE OF RECONCILIATION OF PROVISION OF INCOME TAX

    2024  
    2023 

    September