NOTE 14 – INCOME TAXES

12 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

NOTE 14 – INCOME TAXES

NOTE 14 – INCOME TAXES

The Company has operations in the United States and Hong Kong, which is subject to a statutory income tax rate at 21% and 16.5%, respectively. Components of net deferred tax assets, including a valuation allowance, are as follows as of August 31, 2022 and 2021:

	August 31, 2022			August 31, 2021
Deferred tax asset attributable to:
Net operating loss carry over	$	1,328,204		$	871,681
Less: valuation allowance		(1,328,204	)		(871,681	)
Net deferred tax asset	$	—		$	—

The valuation allowance for deferred tax assets was $1,328,204 and $871,681 as of August 31, 2022 and 2021, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of August 31, 2022 and 2021.

Reconciliation between the statutory rate and the effective tax rate is as follows for the years ended August 31, 2022 and 2021:

	Years ended
	August 31,
	2022			2021
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

The Company’s fully owned subsidiary App Board Limited registered and located in Hong Kong. It is governed by the income tax law of the Hong Kong and is subject to a tax rate of 16.5%.

During the years ended August 31, 2022 and 2021, both the Company and its subsidiary incurred net loss. As a result, the Company and its subsidiary did not incur any income tax during the years ended August 31, 2022 and 2021.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS