NOTE 10 – INCOME TAXES

12 Months Ended

Aug. 31, 2024

Income Tax Disclosure [Abstract]

NOTE 10 – INCOME TAXES

NOTE 10 – INCOME TAXES

The Company and its fully owned subsidiary, AB Cinemas NY, Inc, were incorporated in the United States and are subject to a statutory income tax rate at 21%. The Company’s fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5%.

As of August 31, 2024 and 2023, the components of net deferred tax assets, including a valuation allowance, were as follows:

	August 31, 2024			August 31, 2023
Deferred tax asset attributable to:
Net operating loss carry over	$	1,963,323		$	2,077,213
Less: valuation allowance		(1,963,323	)		(2,077,213	)
Net deferred tax asset	$	—		$	—

The valuation allowance for deferred tax assets was $1,963,323 and $2,077,213 as of August 31, 2024 and 2023, 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, 2024 and 2023.

Reconciliation between the statutory rate and the effective tax rate is as follows for the years ended August 31, 2024 and 2023:

	Year ended
	August 31,
	2024			2023
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 – INCOME TAXES (continued)

For the year ended August 31, 2024, the Company and its subsidiaries generated net income. However, due to the fact that the Company had net operating loss carry forwarded, the Company and its subsidiaries did not incur any income tax for the year ended August 31, 2024.  

For the year ended August 31, 2023, the Company and its subsidiaries incurred net losses. As a result, the Company and its subsidiaries did not incur any income tax for the year ended August 31, 2023.