INCOME TAX

3 Months Ended

Jun. 30, 2025

NOTE – 9 INCOME TAX

For the three months ended June 30, 2025 and 2024, the local (“United States of America”) and foreign components of loss before income taxes comprised of the following:


	Three months ended June 30,
	2025			2024

Tax jurisdiction from:
– Local	$	(42,547	)	$	(24,142	)
– Foreign, including
British Virgin Islands		(250,524	)		(132,604	)
Hong Kong		(14,539	)		(4,906	)

Loss before income taxes	$	(307,611	)	$	(161,652	)

United States of America

OneSolution Technology Inc. is registered in the State of Delaware and is subject to tax laws of the United States of America. The U.S. corporate income tax rate is 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 for interest or penalties as they were not material to its results of operations for the periods presented.

As of June 30, 2025, the operations in the United States of America incurred $2,072,721 of cumulative net operating losses which can be carried forward indefinitely to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $435,271 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

BVI

Under the current BVI law, the Company is not subject to tax on income.

Hong Kong

The Company’s subsidiary 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 three months ended June 30, 2025 and 2024 is as follows:


	Three months ended June 30,
	2025			2024

Loss before income taxes	$	(14,539	)	$	(4,906	)
Statutory income tax rate		16.5%			16.5%
Income tax expense at statutory rate		(2,399	)		(810	)
Tax effect of non-deductible items		3,639			293
Tax effect of non-taxable items		–			(70	)
Tax operating loss		(1,240	)		587
Income tax expense	$	–		$	–

As of June 30, 2025, the operations in Hong Kong incurred $4,314 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards under Hong Kong tax regime. the Company has provided for a full valuation allowance against the deferred tax assets of $712 on the expected future tax benefits from the net operating loss carryforwards 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 deferred tax assets and liabilities of the Company as of June 30, 2025 and March 31, 2025:

Schedule of deferred income taxes
	June 30,			March 31,
	2025			2025

Deferred tax assets:
Net operating loss carryforward, from
US tax regime	$	435,271		$	426,336
Hong Kong tax regime		712			1,962
Less: valuation allowance		(435,983	)		(428,298	)
Deferred tax assets, net	$	–		$	–

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

- Definition

The entire disclosure for income tax.

+ References

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+ Details

OneSolution Technology Inc. 10-Q