Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 151

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 151
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 to current year tax positions                                ( 426                119                ( 79  
  Balance at end of the year                                     $                           806      $         925      $          846  

At March 31, 2024 and 2025, there are $925and $846of unrecognized tax benefits that if recognized, would affect the annual effective tax rate. For the year ended March 31, 2023, 2024 and 2025, the Company did not recognize any interest and penalties related to unrecognized tax benefits.

The Company is currently unable to provide an estimate of a range of the total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to fiveyears under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is tenyears. There is no statute of limitations in the case of tax evasion.

In accordance with Guo Shui Fa [2009] No.2, the PRC tax authorities have the right to deem the Company for a tax amount based on the transfer pricing contemporaneous documentations (the “ Contemporaneous Documentations”) or a basis that they considered reasonable. The amount of income taxes payable at March 31, 2024 and 2025 includes the deemed profit tax estimated by the management based on the Contemporaneous Documentations.

9. Lease

Operating leases as lessor

We have non-cancellableagreements to lease our factory buildings to tenants under operating lease. The lease terms are between1month to36months. The leases do not contain contingent payments. At March 31, 2025, the minimum future rental income to be received is as follows:

  Year ending March 31, 2025              $103  
  Total minimum future rental income      $103  

The following table represents lease income recognized in the consolidated statements of comprehensive income:

                                                            March 31,                              
                                                            2024                    2025           
 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Operating lease income                                    $              523      $         386  
  Other information:                                                                               
  Operating cash flows from operating leases as lessor      $              550      $         405  

Operating leases as lessee

The Company