Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 129

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 129
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products, other software vendor pricing and current pricing practices.

Employee
benefits

Employee
benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset.

  Defined                                                                                                                            
  Defined                                                                                                                            

  ii)      Short-term                                                                                                                             
           Employee                                                                                                                               

  iii)      Key                                                                                                                                   
            Key                                                                                                                                   

Related
parties

Parties
are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject
to common control or significant influence of the same party, such as a family member or relative, shareholder, or a related corporation.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Income
taxes

The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective
tax bases.

Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets
to the amount expected to be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

The
provisions of ASC 740-10-25, “ Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for
consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This
interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred
income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures.

The
Company did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line
of its consolidated statements of income for the years ended December 31, 2023 and 2024, respectively. The Company does not expect that
its assessment regarding