Income Taxes

9 Months Ended

Mar. 31, 2026

Income Taxes [Abstract]

INCOME TAXES

NOTE 6. INCOME TAXES

United States

Longduoduo is subject to the U.S. corporation tax rate of 21%.

British Virgin Islands

The Company’s subsidiary, LDD, is incorporated in the BVI and is not subject to tax on income or capital gain. In addition, payments of dividends by LDD to its shareholders are not subject to withholding tax in the BVI.

Hong Kong

Longduoduo HK and LDDJK are incorporated in Hong Kong and are subject to Hong Kong profits tax. Each of them is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. From the year of assessment, 2019/2020, onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. The Company did not have any income subject to the Hong Kong profits tax.

China

Julong and its subsidiaries are subject to a 25% standard enterprise income tax in the PRC. If the taxable income in the calendar year does not exceed RMB 3 million, only 25% of the taxable income will be included in the tax base, which is then subject to a preferential tax rate of 20%. The Company accrued $4,465 and $106,660 of PRC income tax for the nine months ended March 31, 2026 and 2025. Additionally, for the nine months ended March 31, 2026, Longduoduo HK incurred $62,690 in income tax to the Mainland China tax authority in connection with the transfer of its subsidiary Longduoduo Health Technology to Julong.

A summary of income (loss) before income taxes for domestic and foreign locations for the three and nine months ended March 31, 2026 and 2025 is as follows:

	For the Three Months Ended March 31,
	2026			2025
United States	$	(22,111	)	$	(54,908	)
Foreign		(167,855	)		(61,328	)
(Loss) income before income taxes	$	(189,966	)	$	(116,236	)

	For the Nine Months Ended March 31,
	2026			2025
United States	$	(155,523	)	$	(193,408	)
Foreign		(352,756	)		625,843
(Loss) income before income taxes	$	(508,279	)	$	432,435

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows:

	For the Nine Months Ended March 31,
	2026			2025
Income tax (benefit) at USA statutory rate		21	%		21	%
U.S. valuation allowance		(21	)%		(21	)%
Income tax (benefit) at USA effective rate		0	%		0	%

The difference between the PRC statutory income tax rate and the PRC effective tax rate was as follows:

	For the Nine Months Ended March 31,
	2026			2025
Income tax (benefit) at PRC statutory rate		25	%		25	%
Utilization of net operating loss carry forward		0	%		-	%
Tax preference		(3	)%		-	%
PRC valuation allowance		(23	)%		(8	)%
Income tax (benefit) at PRC effective rate		(1	)%		17	%

The Company did not recognize deferred tax assets since it is not more likely than not that it will realize such deferred taxes. The deferred tax would apply to Longduoduo in the U.S. and Julong and subsidiaries in China.

As of March 31, 2026, Julong and its subsidiaries had total net operating loss carry forwards of approximately $767,087 in the PRC that expire through 2031. Due to the uncertainty of utilizing these carry forwards, the Company provided a 100% allowance on all deferred tax assets of approximately $191,772 and $103,712 related to its operations in the PRC as of March 31, 2026 and June 30, 2025, respectively. The PRC valuation allowance has increased by $88,060 and $0 for the nine months ended March 31, 2026 and 2025, respectively.

The Company incurred losses from its United States operations during the nine months ended March 31, 2026 of approximately $155,523. The Company’s United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration expenses. Accordingly, management provided a 100% valuation allowance of approximately $292,214 and $259,555 against the deferred tax assets related to the Company’s United States operations as of March 31, 2026 and June 30, 2025, respectively, because the deferred tax benefits of the net operating loss carry forwards in the United States are not likely to be utilized. The US valuation allowance has increased by approximately $32,659 and $40,616 for the nine months ended March 31, 2026 and 2025, respectively.

The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the Company has significant business operations. The table below presents the earliest tax year that remains subject to examination by major jurisdiction. 

	Earliest tax year that remains subject to examination
U.S. Federal	June 30, 2021
China	June 30, 2020