INCOME TAX EXPENSES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAX EXPENSES

17. INCOME TAX EXPENSES

Caymans and BVIs

The Company and its subsidiary, JE Cleantech International Ltd. are domiciled in the Cayman Islands and the British Virgin Islands, respectively. Both localities currently enjoy permanent income tax holidays; accordingly, the Company and JE Cleantech International Ltd. do not accrue for income taxes.

Singapore

The Company’s subsidiary, JCS-Echigo Pte. Ltd. and Hygieia Warewashing Pte. Ltd are considered Singapore tax resident enterprises under Singapore tax laws; accordingly, they are subject to enterprise income tax on their taxable income as determined under Singapore tax laws and accounting standards at a statutory tax rate of 17% (2022: 17%).

The income tax provision consists of the following components:

	For the years ended December 31,
	2021			2022			2023			2023
	SGD’000			SGD’000			SGD’000			USD’000
Income tax:
Current year		-			289			99			75
Under provision of prior years		37			-			20			15
Current Income Tax Expense Benefit		37			289			119			90
Deferred tax:
Current year		(37	)		(61	)		(47	)		(36	)
Under provision of prior years		-			7			39			30
Deferred Income Tax Expense Benefit		(37	)		(54	)		(8	)		(6	)
Income Tax Expense (Benefit)		-			235			111			84

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2022: 17%) to profit before income tax as a result of the following differences:

	For the years ended December 31,
	2021			2022			2023			2023
	SGD’000			SGD’000			SGD’000			USD’000
Income before tax expenses:		2			1,427			630			477
Tax at the domestic income tax rate		1			243			107			81
Tax effect of expenses that are not deductible in determining taxable profit		6			27			39			30
Under provision in prior years		37			7			12			9
Tax effect of non-taxable incomes		(44	)		(42	)		(47	)		(36	)
Income Tax Expense (Benefit)		-			235			111			84

As of December 31, 2021, 2022 and 2023, the one of the Company’s subsidiaries in Singapore, namely Hygieia Warewashing Pte Ltd had net operating loss carryforwards of approximately SGD751,000, SGD147,000 and Nil, respectively. As of December 31, 2021, 2022 and 2023, deferred tax assets from the net operating loss carryforwards amounted to SGD163,000, SGD25,000 and Nil, respectively, and the Company has provided a valuation allowance as it has concluded that it is more likely than not that these net operating losses would not be utilized in the future.