INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE－15 INCOME TAXES

The provision for income taxes consisted of the following:

	Financial Years ended December 31,
	2024			2023			2022
	US$’000			US$’000			US$’000
Income tax current year		-			10			529
Over provision for previous years		(310	)		(50	)		-
Deferred tax		-			(13	)		-
Income tax (benefit)/expense		(310	)		(53	)		529

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 rate. The Company’s subsidiaries mainly operate in Singapore that are subject to taxes in the jurisdictions in which they operate, as follows:

BVI

MWE is considered to be an exempted British Virgin Islands Company and are presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States.

Singapore

Multi Ways SG is operating in Singapore and are subject to the Singapore tax law at the corporate tax rate at 17% on the assessable income arising in Singapore during its tax year.

The reconciliation of income tax rate to the effective income tax rate based on income before income taxes for the financial years ended December 31, 2024, 2023 and 2022 are as follows:

	Financial Years ended December 31,
	2024			2023			2022
	US$’000			US$’000			US$’000
(Loss)/Income before income taxes		(3,164	)		1,686			1,557
Statutory income tax rate		17	%		17	%		17	%
Income tax expense at statutory rate		(538	)		287			265
Tax effect of non-taxable income		(164	)		(443	)		(62	)
Tax effect of non-deductible items		236			156			339
Effect of lower tax rate in foreign jurisdictions		324			-			-
Tax refund		-			(49	)		-
Tax holiday		-			3			(13	)
Unrecognized deferred tax assets		142			-			-
Overprovision in prior years		(310	)		-			-
Other		-			(7	)		-
Income tax (benefit)/expense		(310	)		(53	)		529

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

	Financial Years ended December 31,
	2024			2023		2022
	US$’000			US$’000		US$’000
Deferred tax asset:
Accelerated depreciation		11			11		8
Net operating loss carryforward		142			-		-
Total deferred tax assets		153			11		8
Less: Valuation allowance(1)		(142	)		-		-
Net deferred tax assets		11			11		8

(1) As of December 31, 2024, the Company determined that it is more likely than not that these deferred tax assets will not be realized. Accordingly, valuation allowance on net operating loss carryforward was provided.

Uncertain tax positions

The Company evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the financial years ended December 31, 2024, 2023 and 2022 and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2024.