Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 318

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 318
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 recognized to the extent that
it is more likely than not that taxable income will be utilized with prior net operating loss carried forwards 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. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not
be utilized. Current income taxes are provided for in accordance with the laws of the relevant tax 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. No penalties and interest were incurred related to underpayment of income tax for the six months ended September 30,
2024 and 2023.

The
Company recognizes interest and penalties related to unrecognized tax benefits, if any, on the other expense line in the accompanying
consolidated statement of income. Accrued interest and penalties are included on the other payables and accrued liabilities line in the
consolidated balance sheets.

The
Company conducts much of its business activities in Singapore, Malaysia, and Hong Kong and is subject to taxation in these jurisdictions.
As a result of its business activities, the Company’s subsidiaries file separate tax returns that are subject to examination by
the foreign tax authorities. As of September 30, 2024, the tax returns for the Company’s Singapore entities from 2021 through
2024 remain open for statutory examination by the Singapore tax authorities. Similarly, as of September 30, 2024, the tax returns
for the Company’s Hong Kong entities from 2019 through 2024 remain open for statutory examination by the tax authorities in Hong
Kong, respectively. In addition, as of September 30, 2024, the tax returns for the Company’s Malaysia entity from 2020 through
2024 remain open for statutory examination by the tax authorities in Malaysia.

Comprehensive
loss consists of two components, namely net income and other comprehensive loss. Other comprehensive loss refers to revenue