INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

14. INCOME TAXES

The loss before income taxes of the Company for the six months ended June 30, 2024 and 2023 were comprised of the following:

	For the six months ended June 30
	2024			2023
Tax jurisdictions from:
- Local	$	(85,201	)	$	(157,072	)
- Foreign, representing:
Hong Kong		(8,384	)		(21,376	)
British Virginia Island (non-taxable jurisdiction)		(400	)		(300	)
Labuan, Malaysia (non-taxable jurisdiction)		(34,776	)		4,508
Malaysia		(437,791	)		(199,389	)
Loss before income taxes	$	(566,552	)	$	(373,629	)

Provision for income taxes consisted of the following:

	For the six months ended June 30
	2024		2023
Current:
- Local	$	-	$	-
- Foreign	$	-	$	-
Deferred tax assets:
- Local	$	-	$	-
- Foreign	$	42	$	824
Deferred tax liabilities:
- Local	$	-	$	-
- Foreign	$	8,466	$	12,899
Income tax payable:
- Local	$	-	$	-
- Foreign	$	3,358	$	3,357
Income tax assets:
- Local	$	-	$	-
- Foreign	$	255,386	$	-

The effective tax rate in the years 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 period presented, the Company has a number of subsidiaries that operates in various countries: United States, Hong Kong, British Virginia Island and Malaysia that are subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of June 30, 2024, the operations in the United States of America incurred $809,648 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 $170,026 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.

Hong Kong

AsiaFIN Holdings Corp. is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 8.25% on its assessable income.

Labuan

Under the current laws of the Labuan, AsiaFIN Holdings Corp. is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 24% of net audited profit.

Malaysia

All Malaysia companies 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 $528,307) or less and that are not part of a group containing a company exceeding this capitalization threshold is 17% on the first MYR 600,000 (approximately $126,794) taxable profit with the remaining balance being taxed at 24%.

As of June 30, 2024, the operations in Malaysia incurred $7,454,813 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss can be carried forward for seven years. The Company has provided for a full valuation allowance against the deferred tax assets of $1,267,318 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.