Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 139

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 139
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 back the
unspent balance of the subsidy. If the total number of employees on the payroll in any one month of the subsidy period is less than the
“committed headcount of paid employees”, the employer will have to pay a penalty to the Hong Kong Government.

For
the years ended December 31, 2024, 2023 and 2022, the Group recognized government grants of nil nil 216,000

For the year ended December 31, 2024, the Group has new investment of HK$ 8,500,000 1,094,275 48,253,736 6,212,101 1,105,998 142,384

Employee
benefits

The
principal employee’s retirement scheme is under the Hong Kong Mandatory Provident Fund Schemes Ordinance. Contributions are made
by both the employer and the employee at the rate of 5 30,000 3,862

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────

During
the years ended December 31, 2024, 2023 and 2022, the total amount charged to the consolidated statements of operations in respect of
the Group’s costs incurred on the Mandatory Provident Fund Scheme were HK$ 286,900 36,936 282,650 317,758

Income
tax

MEGL
is not subject to tax on income or capital gains under the current laws of the British Virgin Islands. In addition, upon payments of
dividends by MEGL and the Company’s subsidiaries in Hong Kong to the Company’s shareholders, no British Virgin Islands withholding
tax will be imposed.

GCL,
GIL, MEIL, GCSL and GFHL are incorporated in and carry trade and business in Hong Kong and are subject to Hong Kong profits tax under
Inland Revenue Department Ordinance. In general, the Inland Revenue Department of Hong Kong has up to seven years to conduct examinations
of the Company’s tax filings. Accordingly, the tax years from 2018 to 2024 of the Company’s Hong Kong subsidiaries remain
open to examination by the taxing jurisdictions.

The
charge for taxation is based on actual results for the year as adjusted for items that are non-assessable or disallowed; and it is calculated
using tax rates that have