Income Taxes (Tables)

12 Months Ended

May 31, 2022

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

Significant components of provision for income taxes for the years ended May 31, 2020, 2021 and 2022 were as follows:

	For the years ended May 31,
	2020			2021			2022
	US$			US$			US$
Current:
PRC		142,992			127,313			44,378
Deferred:
PRC		(8,630	)		(43,725	)		91,934
Total provision for income taxes		134,362			83,588			136,312

Components of Group's Deferred Tax Assets and Liabilities

Significant components of the Group’s deferred tax assets and liabilities were as follows:

	As of May 31,
	2021			2022
	US$			US$
Deferred tax assets
Allowance doubtful accounts		12,710			41,806
Accrued expenses		76,848			53,069
Net operating loss carry-forward		102,595			321,258
Tax impact from the long term investments disposed to a related party		1,521			1,521
Total deferred tax assets		193,674			417,654
Less: valuation allowance		(90,087	)		(397,616	)
Total deferred tax assets, net		103,587			20,038
Deferred tax liabilities
Acquired assets		3,241			1,788
Tax impact from the unrealized gain on available-for-sale investments		9,931			17,452
Total deferred tax liabilities		13,172			19,240

Reconciliation of Effective Tax Rates from 25% Statutory Tax Rates

A reconciliation of the provision for income taxes computed by applying the PRC EIT rates of 25% for the years ended May 31, 2020, 2021 and 2022 to loss before provision for income tax and the actual provision for income tax is as follows:

	For the years ended May 31,
	2020			2021			2022
	US$			US$			US$
Income/(loss) before income taxes		487,836			314,977			(1,032,498	)
PRC statutory income tax rate		25	%		25	%		25	%
Income tax at statutory income tax rate		121,959			78,744			(258,125	)
Effect of non-deductible expenses and loss and super deduction expenses		29,371			(5,174	)		106,903
Effect of income tax exemptions and preferential tax rates		(51,844	)		(38,795	)		(19,570	)
Effect of income tax rate difference in other jurisdictions		(192	)		(181	)		(424	)
Changes in valuation allowance		32,006			48,994			307,528
Effect of dividend withholding tax		3,062			—			—
Provision for income taxes		134,362			83,588			136,312