INCOME TAX

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAX

11.        INCOME TAX

For the years ended December 31, 2023 and 2022, the local (“United States of America”) and foreign components of (loss) income before income taxes were comprised of the following:

	Years ended December 31,
	2023			2022
Tax jurisdiction from:
- Local	$	(296,304	)	$	(305,569	)
- Foreign, including
British Virgin Islands		(264,239	)		(25,141	)
Singapore		(25,057,072	)		(9,677,694	)
Hong Kong		(17,800	)		(43,079	)
Loss before income taxes	$	(25,635,415	)	$	(10,051,483	)

The provision for income taxes consisted of the following:

	Years ended December 31,
	2023		2022
Current:
- Local	$	–	$	–
- Foreign		–		(3,821	)
Deferred:
- Local		–		–
- Foreign		–		–
Income tax credit	$	–	$	(3,821	)

The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company has operations in Hong Kong and Singapore that are subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

BONZ is registered in the State of Nevada and is subject to the tax laws of United States of America. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented. Deferred tax asset is not provided for as the tax losses may not be able to carry forward after a change in substantial ownership of the Company.

For the years ended December 31, 2023 and 2022, there were no operating income.

BVI

Under the current BVI law, MHL and MGL are not subject to tax on income.

Singapore

MPL registered in the Republic of Singapore is subject to the tax laws of Singapore. A subsidiary incorporated in BVI is registered as a branch in Singapore for operating purpose and is also subject to tax in the Republic of Singapore.

As at December 31, 2023, the operation in the Singapore incurred $36,239,184 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating losses carryforward have no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $6,160,661 on the expected future tax benefits from the net operating loss (“NOL”) carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

	Years ended December 31,
	2023			2022
Loss before income taxes	$	(25,057,072	)	$	(9,677,694	)
Statutory income tax rate		17%			17%
Income tax expense at statutory rate		(4,259,702	)		(1,635,502	)
Tax effect of non-deductibles items		8,669			–
Tax effect on non-taxable items		(3,995	)		–
Net operating loss not recognized as deferred tax		4,255,028			1,635,502
Income tax expense	$	–		$	–

Hong Kong

The Company’s subsidiaries operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current period, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the years ended December 31, 2023 and 2022 is as follows:

	Years ended December 31,
	2023			2022
Loss before income taxes	$	(17,800	)	$	(43,079	)
Statutory income tax rate		16.5%			16.5%
Income tax expense at statutory rate		(2,937	)		(7,108	)
Tax effect of non-deductibles items		938			654
Tax effect on non-taxable items		(56	)		–
Tax over-provision		–			(3,821	)
Net operating loss		2,055			6,454
Income tax credit	$	–		$	(3,821	)

The following table sets forth the significant components of the deferred tax assets of the Company as of December 31, 2023 and 2022:

	2023			2022
Deferred tax assets:
NOL – US tax regime	$	243,200		$	180,976
NOL – British Virgin Islands regime		–			–
NOL – Hong Kong tax regime		8,509			6,454
NOL – Singapore tax regime		6,160,661			1,905,633
		6,412,370			2,093,063
Less: valuation allowance		(6,412,370	)		(2,093,063	)
Deferred tax assets, net	$	–		$	–

As of December 31, 2023 and 2022, the Company had no unrecognized tax benefits. Interest and penalty charges, if any, related to income taxes would be classified as a component of the provision for income taxes in the consolidated statements of operations. The Company does not expect any significant change in its uncertain tax positions in the next twelve months.

The Company filed income tax returns in the United States federal tax jurisdiction and several state tax jurisdictions. Since the Company is in a loss carryforward position, it is generally subject to examination by federal and state tax authorities for all tax years in which a loss carryforward is available.