Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 226

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 226
---
Tax Rate Reconciliation

The reconciliation between the Hong Kong statutory income tax rate applicable to the Company’s profits and the income tax expense is presented below:

|                                                                      |     | For the years ended December 31, |           |   |     |      |            |   |     |                 |           |   |
|                                                                      |     |                             2022 |           |   |     | 2023 |            |   |     |                 |           |   |
|                                                                      |     |                              HK$ |           |   |     |  HK$ |            |   |     | US$ (Note 2(e)) |           |   |
| Profit before provision for income taxes                             |     |                                  | 5,599,317 |   |     |      | 14,267,488 |   |     |                 | 1,829,165 |   |
| Income tax expenses computed at statutory rate                       |     |                                  |   923,887 |   |     |      |  2,354,135 |   |     |                 |   301,813 |   |
| Tax effect of preferential tax rate                                  |     |                                  |  (165,000 | ) |     |      |   (165,000 | ) |     |                 |   (21,154 | ) |
| Tax effect of income not subject to tax                              |     |                                  |   (46,629 | ) |     |      |    (26,795 | ) |     |                 |    (3,435 | ) |
| Tax effect on temporary difference not recognized in previous period |     |                                  |     2,339 |   |     |      |      2,475 |   |     |                 |       317 |   |
| Tax effect of tax deduction                                          |     |                                  |    (6,000 | ) |     |      |     (3,000 | ) |     |                 |      (385 | ) |
| Total income tax expense                                             |     |                                  |   708,597 |   |     |      |  2,161,815 |   |     |                 |   277,156 |   |

| F-36 |

Deferred Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company’s deferred tax assets and liabilities were as follows:

|