Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 183

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 183
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 HK$ 2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$ 2 million will be taxed at 16.5%. The Company’s Hong Kong subsidiary did not have assessable profits that were derived in Hong Kong for the years ended June 30, 2024 and 2023. Therefore, no Hong Kong profit tax has been provided for the years ended June 30, 2024 and 2023.

PRC

The Company’s PRC subsidiaries are subject to the PRC Enterprise Income Tax Law (“EIT Law”) and are taxed at the statutory income tax rate of 25%, unless otherwise specified.

The components of the income tax provision consisted of the following:

|                              |     | For the Years Ended June 30, |     2024 |   |     |   |     2023 |   |
|:-----------------------------|:----|:-----------------------------|---------:|:--|:----|:--|---------:|:--|
| Current income tax expenses  |     | $                            |  619,064 |   |     | $ |  861,007 |   |
| Deferred income tax expenses |     |                              | (342,875 | ) |     |   | (145,967 | ) |
| Total                        |     | $                            |  276,189 |   |     | $ |  715,040 |   |

As the main business operations were concentrated in China, PRC statutory income tax rate was applied. The reconciliations of the PRC statutory income tax rate and the Company’s effective income tax rate were as follows:

|                                                                    |     | For the Years Ended June 30, |       |    |     |      |      |    |
|                                                                    |     |                         2024 |       |    |     | 2023 |      |    |
| PRC statutory income tax rate                                      |     |                              |  25.0 | %  |     |      | 25.0 | %  |
| Effect of different tax rates available to different jurisdictions |     |                              |     - |    |     |      |  0.1 | %  |
| Effect of non-deductible expenses                                  |     |                              |   0.6 | %  |     |      |  0.2 | %  |
| Effect of research and development deduction                       |     |                              | (