INCOME TAX

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 11 - INCOME TAX

The income tax benefit for the Nine months ended June 30, 2023 and 2022 is summarized as follows:

	2023		2022
Current tax expense:
Hong Kong profits tax
Provision for the period	$	-	$	-
One-off tax deduction		-		-
Deferred tax benefit:
Hong Kong profits tax		-		-
Deferred tax benefit		50,271		-
Total income taxes	$	50,271	$	-

Hong Kong profits tax was provided in the CFS on the estimated assessable profit for the first HK$2 million at 8.25% and on the estimated assessable profit above HK$2 million for the period at 16.5%. One-off tax reduction is tax concession on the final tax of the period assessment fiscal 2023 at 100% with a ceiling of $1,284. The Company did not make any provision for Hong Kong profits tax as the Company incurred a loss during the nine months and there were no assessable profits for the three months and nine months ended June 30, 2023.

Subsidiary in Australia is subject to a tax rate of 25% for nine months ended June 30, 2023. The subsidiary is qualified for the reduced tax rate that fall below turnover threshold of AUD 50 million (USD 37 million). No Australian income tax was provided in the CFS as the subsidiary does not have assessable profit during the period.

A reconciliation of the provision for income taxes compared with the amount at the tax rate for the Nine months ended June 30, 2023 and 2022 was as follows:

	2023			2022
Loss before income tax expense	$	(1,630,892	)	$	-
Tax charge at the applicable tax rate
at 16.5% on profit above HK$2million	$	(63,942	)	$	-
Tax effect of expenses not deductible		388			-
Tax effect of exempted bank interest income not taxable		(3,043	)		-
Tax effect of tax losses carried forward		65,100			-
Others		51,768			-
Total income taxes	$	50,271		$	-

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 and 2022

UNAUDITED

The components and movements in deferred tax assets (liabilities) are as follows:

	Accelerated depreciation allowances			allowance for expected credit losses			Total
At September 30, 2022	$	-		$	-		$	-
Deferred taxation from acquisition		(2,420	)		10,563			8,143
Deferred taxation credited to statement of operations		1,497			48,774			50,271
Translation difference		3			(37	)		(34	)
At June 30, 2023	$	(920	)	$	59,300		$	58,380