Income Tax Expenses / (Benefit)

12 Months Ended

Dec. 31, 2023

Income Tax Expenses / (Benefit) [Abstract]

INCOME TAX EXPENSES / (BENEFIT)

17 INCOME TAX EXPENSES / (BENEFIT)

	2023		2022 (As revised2)		2021 (As revised2)
	USD		USD		USD
Current Tax Expense
Current year		115,833		107,355		13,829
Changes in estimates related to prior years		30,607		-		-
Deferred tax expense/(credit)
Origination and reversal of temporary difference		77,862		34,795		(28,537	)
Income tax expenses/(benefit)		224,302		142,150		(14,708	)

The tax on the Group’s profit before income tax differs from the theoretical amount that would arise using the Singapore’s standard rate of income tax as follows:

	2023			2022 (As revised2)			2021 (As revised2)
	USD			USD			USD
Reconciliation between tax expenses and accounting profit at applicable tax rate
Profit before tax		1,088,339			903,490			348,152
Tax at the domestic rates applicable to profits in the countries where the Group operates		185,018			153,593			59,185
Difference from the effect of tax rates in a foreign jurisdiction		10,583			(292	)		12,058
Non-deductible expenses		11,084			1,483			(72,982	)
Other Non-taxable Income		(12,990	)		(12,634	)		(12,969	)
Changes in estimates related to prior years		30,607			-			-
Income tax expenses (benefit)		224,302			142,150			(14,708	)

	2023		2022 (As revised)
	USD		USD
Deferred tax assets
Tax losses carried forward		11,734		77,063
Lease liability		14,335		37,293
Deferred tax liabilities
Right-of-use assets		13,334		35,811
Depreciation		11,997		-
Net deferred tax assets		738		78,545

Movement in deferred tax liabilities:

	Accelerated tax depreciation			Right-of-use assets			Total
	USD			USD			USD
Balance at January 1, 2022 (As revised2)		-			(20,972	)		(20,972	)
Recognized in profit or loss		-			(14,358	)		(14,358	)
Effect of movement in exchange rates		-			(481	)		(481	)
Balance at December 31, 2022 and January 1, 2023 (As revised2)		-			(35,811	)		(35,811	)
Recognized in profit or loss		(11,793	)		22,789			10,996
Effect of movement in exchange rates		(204	)		(312	)		(516	)
Balance at December 31, 2023		(11,997	)		(13,334	)		(25,331	)

Movement in deferred tax assets:

	Accelerated tax depreciation			Tax losses carried forward			Lease liability			Total
	USD			USD			USD			USD
Balance at January 1, 2022 (As revised2)		5,261			107,460			21,917			134,638
Recognized in profit or loss		(5,156	)		(30,158	)		14,877			(20,437	)
Effect of movement in exchange rates		(105	)		(239	)		499			155
Balance at December 31, 2022 and January 1, 2023 (As revised2)		-			77,063			37,293			114,356
Recognized in profit or loss		-			(65,567	)		(23,291	)		(88,858	)
Effect of movement in exchange rates		-			238			333			571
Balance at December 31, 2023		-			11,734			14,335			26,069

The deferred tax assets is mainly recognized in respect of temporary differences effected by net operating losses. As of December 31, 2023 and 2022, the Company had temporary difference of lease liability of $84,322 and $219,369 respectively, mainly from the Company’s Singapore subsidiaries Hong Ye Group Pte Ltd. As of December 31, 2023 and 2022, the Company had net operating losses carry forward of $24,863 and $407,552, respectively, mainly from the Company’s Singapore subsidiaries YY Circle (SG) Pte Ltd. The net operating losses from the Singapore subsidiaries can be carried forward indefinitely. Due to the Singapore subsidiaries’ operating history of turning losses into profits, the Company is certain that these net operating losses can be utilized. As a result, the Company provided a 100% recognition on deferred tax assets of $738 and $78,545 as of December 31, 2023 and 2022, respectively.