Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 251

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 251
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 the invoiced value of service,
net of applicable GST. The GST is chargeable on gross sales price. In Singapore, GST rate is 8% on gross sales price for calendar year
2023 and 9% for calendar year 2024. Entities that are GST-registered are allowed to offset qualified input GST paid to suppliers against
their output GST liabilities. Net GST balance between input GST and output GST is recorded in tax payable or receivable.

The Company accounts for income taxes in accordance
with ASC 740 U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year and adjusted for items, which
are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet
date.

Deferred tax is calculated using the balance sheet
liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in
the consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable
temporary differences. Deferred tax assets are 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 years ended March 31, 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