INCOME TAX

6 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 12 - INCOME TAX

The income tax benefit is summarized as follows:

	For the six months March 31,
	2024			2023
Current tax expense:
Hong Kong profits tax
Provision for the period	$	2,612		$	-
One-off tax deduction		(384	)		-
Total		2,228			-
Deferred tax benefit:
Hong Kong profits tax
Deferred tax benefit		(60,588	)		(24,492	)
Total income taxes	$	(58,360	)	$	(24,492	)

The Company is subject to a Federal Corporate tax rate of 21% for six months ended March 31, 2024. No income tax was provided in the unaudited condensed consolidated financial statements as the Company does not have assessable profit during the six months ended March 31, 2024 and 2023.

Subsidiary in Hong Kong is subject to Hong Kong profit tax and profits tax was provided in the unaudited condensed consolidated financial statements 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 2024 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 six months and there were no assessable profits for the six months ended March 31, 2024 and 2023.

Subsidiary in Australia is subject to a tax rate of 25% for six months ended March 31, 2024. 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 unaudited condensed consolidated financial statements as the subsidiary does not have assessable profit during the six months ended March 31, 2024 and 2023.

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation of the provision for income taxes compared with the amount at the tax rate for the six months ended March 31, 2024 and 2023 was as follows:

	For the six months March 31,
	2024			2023
Loss before income tax expense	$	(215,003	)	$	(1,369,625	)
Tax charge at the applicable tax rate (21%)	$	(43,601	)	$	(287,621	)
Tax effect on foreign tax rate differential		15,018			251,710
Tax effect of expenses not deductible		51,361			388
Tax effect of exempted bank interest income not taxable		(25	)		(2	)
Tax effect of tax losses carried forward		-			34,217
Others		(81,113	)		(23,184	)
Total income taxes	$	(58,360	)	$	(24,492	)

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

	Accelerated depreciation allowances			allowance for expected credit losses			Total
At September 30, 2023	$	(1,018	)	$	23,499		$	22,481
Deferred taxation charged (credited) to statement of operations		(770	)		55,676			54,906
Translation difference		-			(24	)		(24	)
At March 31, 2024	$	(1,788	)	$	79,151		$	77,363

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

	Fair value of net assets acquired
At September 30, 2023	$	(26,315	)
Deferred taxation credited to statement of operations		5,682
At March 31, 2024	$	(20,633	)

FLYWHEEL ADVANCED TECHNOLOGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS