Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 69

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 69
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 the jurisdiction in which members of our Group domicile
or operate.

  46  

BVI

We
are not subject to any income tax in the BVI.

Hong
Kong profits tax

Our
Hong Kong subsidiary subject to a tax rate of 16.5% on the assessable profits arising in or derived from Hong Kong. From year of assessment
of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable
profits over HK$2,000,000.

We
recorded nil income tax as we had no assessable profit during the year ended December 31, 2023 as interest income from bank are non-taxable
and we had available tax losses brought forward from prior year.

Net
income/(loss)

We recorded net loss of HK$483,812 for the year ended December 31, 2023
and net loss of HK$3,842,278 for the year ended December 31, 2022, mainly due to an increase in bank interest income.

B.
Liquidity and capital resources

The
following table set forth our current assets and current liabilities as of the dates indicated:

                           As                                                                                    
                           of December 31,                                                                       
                           2023                                 2024                       2024                  
                           HK$                                  HK$                        US$                   
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Current                                                                                                        
  Cash                                          92,407,813                127,511,687                16,415,630  
  Accounts                                       2,302,436                  1,794,218                   230,984  
  Interest                                         449,550                    449,605                    57,881  
  Deposits                                       1,096,249                    885,448                   113,991  
  Total                                         96,256,048                130,640,958                16,818,486  
  Current                                                                                                        
  Accruals                                       1,079,000                    693,234                    89,246  
  Contract                                       1,164,000                  1,644,000                   211,645  
  Operating                                      1,746,317                  1,204,436                   155,057  
  Total                                          3,989,317