Company: KPEA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006580
Chunk: 82

Company: Kun Peng International Ltd.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 82
---
 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 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 three months ended December 31, 2024 and 2023.

British
Virgin Islands

KP
International Holding is a holding company 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.

    34

Hong
Kong

The
two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (“the Ordinance”)
of Hong Kong and became effective for the assessment year 2018/2019. Under the two-tier profits tax rates regime, the profits tax rate
for the first $0.26 million (HKD 2 million) of assessable profits of a corporation will be subject to a lowered tax rate of 8.25%, while
the remaining assessable profits will be subject to the legacy tax rate of 16.5%.

KP
(Hong Kong) did not earn any income that was derived in Hong Kong for the three months ended December 31, 2024 and 2023, and, therefore,
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 the 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 

    Three Months Ended December 31, 

    2024  
    2023 
  
    Current 

    Federal 
    $