INCOME TAXES

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

13. INCOME TAXES

The loss before income taxes of the Company for the years ended March 31, 2024 and 2023 were comprised of the following:

	For the years ended March 31
	2024			2023
Tax jurisdictions from:
– Local	$	(671,075	)	$	(96,883	)
– Foreign, representing:
Marshall Islands (non-taxable jurisdiction)		-			(1,800	)
Hong Kong		-			-
Malaysia		-			(435,993	)
Loss before income taxes	$	(671,075	)	$	(534,676	)

Provision for income taxes consisted of the following:

	For the years ended March 31
	2024		2023
Current:
– Local	$	-	$	-
– Foreign:
Marshall Islands (non-taxable jurisdiction)		-		-
Hong Kong		-		-
Malaysia		-		-
Deferred:
– Local		-		-
– Foreign		-		-
	$	-	$	-

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. During the periods presented, the Company has a number of subsidiaries that operates in different countries and is subject to tax in the jurisdictions in which its subsidiaries operate, as follows:

United States of America

The Tax Act reduces the U.S. statutory corporate tax rate from 35% to 21% for our tax years beginning in 2018. The Company is registered in the State of Nevada and is subject to United States of America tax law. As of March 31, 2024, the operations in the United States of America incurred $958,879 of cumulative net operating losses (NOL’s) which can be carried forward to offset future taxable income. The NOL carry forwards begin to expire in 2044, if unutilized. The Company has provided for a full valuation allowance of approximately $201,365 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

Malaysia

Lucky Star F&B Sdn. Bhd. and SH Dessert Sdn. Bhd. are subject to the Malaysia Corporate Tax Laws at a two-tier corporate income tax rate based on amount of paid-up capital. The 2024 tax rate for company with paid-up capital of MYR 2,500,000 (approximately $529,235) or less and that are not part of a group containing a company exceeding this capitalization threshold is 15% on first chargeable income of MYR 150,000 (approximately $31,754), 17% on remaining chargeable income up to MYR 600,000 (approximately $127,016) and any chargeable income beyond MYR 600,000 (approximately $127,016) will be subject to the corporate tax rate of 24%.

For the year ended March 31, 2024, Lucky Star F&B Sdn. Bhd. generated profits of $18,995 and SH Desserts Sdn. Bhd. incurred a loss of $4,076.

As of March 31, 2024, the operations in Malaysia was discontinued due to the disposal of the two subsidiaries, Lucky Star F&B Sdn. Bhd. and SH Desserts Sdn. Bhd.

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of March 31, 2024 and March 31, 2023:

	As of March 31
	2024			2023
Deferred tax assets:
Net operating loss carryforwards	$			$
– United States of America		201,365			60,439
– Marshall Islands		-			-
– Hong Kong		-			-
– Malaysia		-			313,031
		201,365			373,470
Less: valuation allowance		(201,365	)		(373,470	)
Deferred tax assets	$	-		$	-

Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $201,365 as of March 31, 2024. For the year ended March 31, 2024, the valuation allowance decreased by $172,105, primarily relating to the loss incurred by the Company and disposal of Lucky Star F&B Sdn. Bhd and SH Dessert Sdn. Bhd.