INCOME TAX

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 8 – INCOME TAX

The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the period presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not.

United States

Net operation losses (“NOLs”) can carry forward indefinitely up to offset 80% of taxable income after CARES Act effect on December 31, 2017. As of March 31, 2024 and 2023, deferred tax assets resulted from NOLs of approximately $97,000 and $69,000, respectively. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.

Hong Kong

Companies incorporated in Hong Kong are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% on its taxable income generated from operations in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

PRC

Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, starting from January 1, 2008, the Company’s subsidiaries in PRC are subject to an enterprise income tax rate of 25%. NOLs can typically carried forward for a certain number of years (usually five years) to offset against future taxable income. The deferred tax asset has been fully reserved for valuation allowance as the Company believes they will most-likely-than-not realize the benefits.

The following table summarizes the taxable income (loss) before income taxes by jurisdiction:

	Years ended March 31,
	2024			2023
United States	$	(135,502	)	$	(36,630	)
Hong Kong		-			-
China		(277,469	)		-
Total	$	(412,971	)	$	(36,630	)

The following table summarizes a reconciliation of income tax expense for operations, calculated at the statutory income tax rate to total income tax expense (benefit):

	Years ended March 31,
	2024			2023
Income tax expense at federal statutory rate		21.0	%		21.0	%
Income tax expense at state statutory rate		7.5	%		7.5	%
Income tax expense at PRC statutory rate		25.0	%		-	%
Increases (decreases) due to:
Foreign tax rate differential		-	%		-	%
Change in valuation allowance		(53.5	)%		(28.5	)%
Effective tax rate		-	%		-	%