Company: FLYE
Filing Date: 2025-02-19
Form Type: 10-Q
Source: 0001213900-25-015334
Chunk: 26

Company: Fly-E Group, Inc.
Filing Date: 2025-02-19
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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96,880, respectively, which were recorded under
general and administrative expenses.

(r) Income Taxes

Current income taxes are provided based on net
income/(loss) for financial reporting purposes and adjusted for income and expense items which are not assessable or deductible for income
tax purposes, in accordance with the regulations of the relevant tax jurisdictions.

Deferred taxes are accounted for using the asset
and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities
in the unaudited condensed consolidated financial statements and the corresponding tax basis used in the computation of assessable tax
profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets (the “DTAs”)
are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences
can be utilized.

Deferred tax is calculated using tax rates that
are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the
income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt
with in equity. DTAs are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion
or all the DTAs will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit
only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized
on 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 tax returns filed in 2018
to 2023 are subject to examination by any appropriate tax authorities. For the three months ended December 31, 2024 and 2023, the Company
accrued nil and nil income tax related penalty included in current income taxes expenses, respectively. For the nine months ended December
31, 2024 and 2023, the Company accrued $63,812 and $55,604 income tax related penalty included in current income taxes expenses, respectively.

(s)