INCOME TAX

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAX

12.       INCOME TAX

For the nine months ended September 30, 2022 and 2021, the local (“United States of America”) and foreign tax regime incurred losses before income taxes, which comprised of the following:

	For the Nine Months Ended September 30,
	2022			2021
Tax jurisdiction from:
- Local	$	(277,658	)	$	(1,284	)
- Foreign, including		–			–
British Virgin Islands		(25,115	)		(11,161	)
Singapore		(9,293,825	)		(6,052	)
Hong Kong		(42,448	)		(49,064	)
Loss before income taxes	$	(9,639,046	)	$	(67,561	)

The provision for income taxes consisted of the following:

	For the Nine Months Ended September 30,
	2022		2021
Current:
- Local	$	–	$	–
- Foreign		3,820		–
Deferred:
- Local		–		–
- Foreign		–		–
Income tax credit	$	3,820	$	–

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. 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 nine months ended September 30, 2022 and 2021, there were no operating income.

BVI

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

Singapore

The Company’s subsidiary 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.

	For the Nine Months Ended September 30,
	2022			2021
Loss before income taxes	$	(9,293,825	)	$	(6,052	)
Statutory income tax rate		17%			17%
Income tax benefit at statutory rate		(1,579,950	)		(1,029	)
Tax effect of disallowable items		6,297			18
Net operating loss		1,573,653			1,011
Income tax expense	$	–		$	–

Hong Kong

The Company’s subsidiaries operating in Hong Kong are 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 nine months ended September 30, 2022 and 2021 is as follows:

	For the Nine Months Ended September 30,
	2022			2021
Loss before income taxes	$	(42,448	)	$	(49,065	)
Statutory income tax rate		16.5%			16.5%
Income tax benefit at statutory rate		(7,004	)		(8,096	)
Tax effect of non-deductible and non-taxable items		615			42
Tax over-provision		3,820			–
Net operating loss		6,389			8,054
Income tax credit	$	3,820		$	–

The following table sets forth the significant components of the deferred tax assets of the Company as of September 30, 2022 and December 31, 2021:

	As of September 30, 2022			As of December 31, 2021
Deferred tax assets:
NOL – US tax regime	$	175,115		$	116,807
NOL – British Virgin Islands regime		–			–
NOL – Hong Kong tax regime		6,389			–
NOL – Singapore tax regime		1,842,350			270,131
		2,023,854			386,938
Less: Valuation allowance		(2,023,854	)		(386,938	)
Deferred tax assets, net	$	–		$	–

As of September 30, 2022, the operations in the United States of America incurred $833,882 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 $175,115 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.

As of September 30, 2022, the operations in Singapore incurred $10,837,351 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 Singapore tax regime. the Company has provided for a full valuation allowance against the deferred tax assets of $1,842,350 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.

As of September 30, 2022, the operations in Hong Kong incurred $38,720 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 $6,389 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 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.