Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 643

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 643
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 and liabilities
for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the
expected future tax benefit to be derived from tax losses and tax credit carryforwards. Additionally, the accounting standards require
the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The Company and its subsidiaries
file separate income tax returns.

United
States

Kun
Peng International Limited is incorporated in the State of Nevada and is subject to the United States federal income tax. No provision
for income taxes in the U.S. has been made as the Company has no U.S. taxable income for the years ended September 30, 2024, and 2023.

British
Virgin Islands

KP
International Holding is a holding corporation organized as an International Business Company under the laws of the British Virgin Islands
(“BVI”), and its principal operating subsidiaries are organized under the laws of Hong Kong and the laws of the PRC. KP International
and its subsidiaries are not subject to income taxes in the BVI.

Hong
Kong

The
two-tier profits tax rates system was introduced under the Inland Revenue (Amendment)(No.3) Ordinance 2018 (“the Ordinance”)
of Hong Kong became effective for the assessment year 2018/2019. Under the two-tier profit tax rates regime, the profits tax rate for
the first $0.26 million (HKD 2 million) of assessable profits of a corporation will be subject to the lowered tax rate, 8.25% while the
remaining assessable profits will be subject to the legacy tax rate, 16.5%. The Ordinance only allows one entity within a group of “connected
entities” is eligible for the two-tier tax rate benefit. An entity is a connected entity of another entity if (1) one of them has
control over the other; (2) both of them are under the control (more than 50% of the issued share capital) of the same entity; (3) in
the case of the first entity being a natural person carrying on a sole proprietorship business-the other entity is the same person carrying
on another sole proprietorship business.

    F-41

Since
KP (China) and KP (Hong Kong) are wholly owned and under the control of KP International Holding, these entities are connected entities.
Under the Ordinance, it is an entity’s election to nominate the entity that