Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 233

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 233
---
 5 25 20

For
the years ended June 30, 2025, 2024 and 2023, some PRC subsidiaries are qualified small, low profit enterprises as defined, and thus
are eligible for the above preferential tax rates for small, low profit enterprises.

According
to [2021] No.13, announcement of the Ministry of Finance and the State Taxation Administration, which became effective from January 1,
2021, an enterprise engaged in manufacturing business and whose main operating revenue accounts for more than 50 100

According
to [2023] No.7, announcement of the Ministry of Finance and the State Taxation Administration, effective from January 1, 2023 onwards,
enterprises engaging in research and development activities are entitled to claim an additional tax deduction amounting to 100

The
income tax provision consists of the following components:

                                   For the years ended June 30,                                
                                                                     2025      2024      2023  
 ───────────────────────────────────────────────────────────────────────────────────────────────
  Current income tax expense       $                                 -         -         -     
  Deferred income tax expense                                        -         -         -     
  Total income tax expense         $                                 -         -         -     

F-38

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  16.      TAXATION  

A
reconciliation between the Group’s actual provision for income taxes and the provision at the PRC, mainland statutory rate is as
follows:

                                                            For the years ended June 30,                                                                     
                                                            2025                                               2024                     2023                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Loss before income tax expense                            $                                  13,065,903      $         5,980,776      $         6,618,209  
  Income tax expense at the PRC statutory rate of 25%                                           3,266,475                1,495,193                1,654,553  
  Impact of different tax rates in other jurisdictions                                        ( 1,222,580                ( 155,074                        -  
  Effect of preferential tax rate (a)                                                           ( 925,755                ( 715,782                (