Income Taxes

6 Months Ended

Nov. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 13. Income Taxes

United States

Under the current tax laws of United States, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no United States withholding tax will be imposed.

British Virgin Island

Under the current tax laws of British Virgin Island, the Company and its subsidiaries are not subject to tax on their income or capital gains. In addition, upon of dividends by the Company to its shareholders, no British Virgin Island withholding tax will be imposed.

Hong Kong

From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000 (approximately $289,855), and 16.5% on any part of assessable profits over HK$2,000,000. For the years ended May 31, 2022 and 2021, the Company did not have any assessable profits arising in or derived from Hong Kong, therefore no provision for Hong Kong profits tax was made in the year.

P.R.C China

The China Corporate Income Tax Law (“CIT Law”) became effective on January 1, 2008. Under the CIT Law, China’s dual tax system for domestic enterprises and foreign investment enterprises (“FIEs”) was effectively replaced by a unified system. The new law establishes a tax rate of 25% for most enterprises. The Company’s VIE through which the majority of our business in China is applicable to this tax rate

The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended November 30, 2024 and November 30, 2023, respectively:

	For the three months ended November 30, 2024			For the three months ended November 30, 2023
PRC statutory rate		25	%		25	%
Net operating losses for which no deferred tax assets were recognized		(25	)%		(25	)%
The Company’s expense is out of limit than that of PRC statutory tax policy allowed		16.5	%		16.5	%
Effective income tax rate		16.5	%		16.5	%

Income tax expense for the three months and six months ended November 30, 2024 and November 30, 2023, respectively are as follows:

	For The Three Months Ended November 30,
	2024		2023
	$		$
Current		-		-
Deferred		37,017		-
Income tax expense		37,017		-

	For The Six Months Ended November 30,
	2024			2023
	$			$
Current		(2,263	)		-
Deferred		37,017			-
Income tax expense		34,754			-

Income tax expense $34,754 is included income tax income $2,263 and deferred income tax expense $37,017.

Income tax income $2,263 included income tax refund $3,475 from previous year and tax expenses $1,212 for the period ended August 31, 2024. Income tax expense $37,017 is the deferred income tax expense for the year ended May 31, 2022.