INCOME TAXES

3 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

The loss before income taxes of the Company for the three months ended June 30, 2023 and 2022 were comprised of the following:

	For the three months ended June 30
	2023			2022
Tax jurisdictions from:
– Local	$	(43,854	)	$	(40,188	)
– Foreign, representing:
Marshall Islands (non-taxable jurisdiction)		-			-
Hong Kong		-			-
Malaysia		(2,959	)		(103,409	)
Loss before income taxes	$	(46,813	)	$	(143,597	)

Provision for income taxes consisted of the following:

		For the three months ended June 30
		2023		2022
Current:
– Local	$	-	$	-
– Foreign:
Marshall Islands (non-taxable jurisdiction)		-		-
Malaysia		-		-
Deferred:
– Local		-		-
– Foreign		-		-
	$	-	$	-

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. During the periods presented, the Company has a number of subsidiaries that operates in different countries and is subject to tax in the jurisdictions in which its subsidiaries operate, as follows:

United States of America

The Tax Act reduces the U.S. statutory corporate tax rate from 35% to 21% for our tax years beginning in 2018. The Company is registered in the State of Nevada and is subject to United States of America tax law. As of June 30, 2023, the operations in the United States of America incurred $331,658 of cumulative net operating losses (NOL’s) which can be carried forward to offset future taxable income. The NOL carry forwards begin to expire in 2043, if unutilized. The Company has provided for a full valuation allowance of approximately $69,648 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

Malaysia

Lucky Star F&B Sdn. Bhd. and SH Desserts Sdn. Bhd. are subject to the Malaysia Corporate Tax Laws at a two-tier corporate income tax rate based on amount of paid-up capital. The 2023 tax rate for company with paid-up capital of MYR 2,500,000 (approximately $535,573) or less and that are not part of a group containing a company exceeding this capitalization threshold is 17% on the first MYR 600,000 (approximately $128,537) taxable profit with the remaining balance being taxed at 24%.

For the three months ended June 30, 2023, Lucky Star F&B Sdn. Bhd.and SH Desserts Sdn. Bhd. incurred a loss of $1,483 and $1,476 respectively, which can be carried forward for seven years to offset its taxable income.

As of June 30, 2023, the operations in Malaysia generated $1,844,318 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss can be carried forward for seven years. The Company has provided for a full valuation allowance against the deferred tax assets of $313,534 on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of June 30 and March 31, 2023:

	As of June 30, 2023			As of March 31, 2023
Deferred tax assets:
Net operating loss carryforwards	$			$
– United States of America		69,648			60,439
– Marshall Islands		-			-
– Malaysia		313,534			313,031
		383,182			373,470
Less: valuation allowance		(383,182	)		(373,470	)
Deferred tax assets	$	-		$	-

Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $383,182 as of June 30, 2023. For three months ended June 30, 2023, the valuation allowance increased by $9,712, primarily relating to the loss incurred by the Company, Lucky Star F&B Sdn. Bhd. and SH Desserts Shd. Bhd.