Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 248

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 248
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 tax examination,
with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than50% likely
of being realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The
Group had no uncertain tax position as of June 30, 2025 and 2024. The Group does not expect that its assessment regarding unrecognized
tax positions will materially change over the next 12 months.

No penalties and interest
incurred related to underpayment of income tax are classified as income tax expense in the period incurred. PRC tax returns filed in 2018
to 2025 are subject to examination by any applicable tax authorities. Hong Kong tax returns filed in 2016 to 2025 are subject to examination
by any applicable tax authorities. Taiwan tax returns filed in 2018 to 2025 are subject to examination by any applicable tax authorities.

Commitments and Contingencies

In the normal course of business,
the Group is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range
of matters, such as government investigations and tax matters. The Group recognizes a liability for such contingency if it determines
it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Group may consider many factors in making
these assessments including historical and the specific facts and circumstances of each matter.

Segment reporting

The Group operates and manages
its business as a single reportable segment, in accordance with ASC 280, Segment Reporting. The Group’s chief operating decision
maker (“ CODM”) is the Chief Executive Officer. The Group’s CODM assess the Group’s performance and results of
operations on a consolidated basis. The Group generates its revenues from subsidiaries in Taiwan, Macau, Hong Kong and the PRC, all of
which are under the control of the Chief Executive Officer. Accordingly, tabular disclosure regarding geographical segments have been
presented under Note 3 - Revenues.

F-15

Concentration of Risks

The Group is subject to risks associated with concentrations in its
customer base and financial instruments. Additionally, the Group’s operations are geographically concentrated in the Asia-Pacific
region. Economic, political, or regulatory changes in this region could significantly impact the Group’s performance.

Credit risk

Financial instruments