Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 149

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 149
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 the upfront payments received upon signing of the contract for IPO/IFA/FA services and
advances from clients related to CA services on the Group’s consolidated balance sheets. These payments are non-refundable and
are recognized as revenue as the Group’s performance obligation is satisfied. The Group’s contract liabilities are
generally recognized as revenue within one year.

As
of December 31, 2024 and 2023, the contract liabilities were comprised of the following:

SCHEDULE OF CONTRACT LIABILITIES

                      As                                                                              
                      of December 31,                                                                 
                      2023                                2024                     2024               
                      HK$                                 HK$                      US$                
 ──────────────────────────────────────────────────────────────────────────────────────────────────────
  Contract                                 1,100,000                1,400,000                180,233  
  Advance                                     64,000                  244,000                 31,412  
  Total                                    1,164,000                1,644,000                211,645  

The
movement in contract liabilities is as follows:

SCHEDULE
OF MOVEMENT IN CONTRACT LIABILITIES

                                                                                                                                            2023                       2024                       2024                 
                                                                                                                                            HK$                        HK$                        US$                  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Balance                                                                                                                                               2,800,000                  1,100,000                  141,612  
  Decrease                                                                                                                                            ( 2,300,000                ( 1,100,000                ( 141,612  
  Increase                                                                                                                                                600,000                  1,400,000                  180,233  
  Balance                                                                                                                                               1,100,000                  1,400,000                  180,233  

10. INCOME TAX

British
Virgin Islands

The
Company is incorporated in the British Virgin Islands and is not subject to taxation. In addition, upon payments of dividends by these
entities to their shareholders, no British Virgin Islands withholding tax will be imposed.

Hong
Kong

Entities
incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5 8.25 2 16.5 2

The
Group’s Hong Kong subsidiaries are subject to Hong Kong profits tax on their taxable income as reported in their statutory financial
statements adjusted in