INCOME TAX

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE – 11 INCOME TAX

For the years ended March 31, 2024 and 2023, the local (“United States of America”) and foreign components of income (loss) before income taxes were comprised of the following:

	Years ended March 31,
	2024			2023
Tax jurisdiction from:
- Local	$	(1,148,669	)	$	(572,551	)
- Foreign, including
British Virgin Islands		(254,779	)		(506,057	)
Hong Kong		(104,021	)		(236,900	)
Loss before income taxes	$	(1,507,469	)	$	(1,315,508	)

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 mainly operates in Hong Kong that is subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

KRFG is registered in the State of Delaware and is subject to tax laws of the United States of America. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act revised the U.S. corporate income tax rate to 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the years presented.

As of March 31, 2024, the operations in the United States of America incurred $1,901,002 of cumulative net operating losses which can be carried forward indefinitely to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $399,210 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

BVI

Under the current BVI law, the Company is not subject to tax on income.

Hong Kong

The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the years ended March 31, 2024 and 2023 is as follows:

	Years ended March 31,
	2024			2023
Loss before income taxes	$	(104,021	)	$	(236,900	)
Statutory income tax rate		16.5%			16.5%
Income tax expense at statutory rate		(17,163	)		(39,089	)
Tax effect of non-deductible items		1,169			1,229
Tax effect of non-taxable items		(301	)		(2,207	)
Valuation allowance		16,295			40,067
Income tax expense	$	–		$	–

As of March 31, 2024, the operations in Hong Kong incurred $1,897,554 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards under Hong Kong tax regime. the Company has provided for a full valuation allowance against the deferred tax assets of $313,096 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

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

	As of March 31,
	2024			2023
Deferred tax assets:
Net operating loss carryforward, from
US tax regime	$	399,210		$	157,990
Hong Kong tax regime		313,096			295,848
Less: valuation allowance		(712,306	)		(453,838	)
Deferred tax assets, net	$	–		$	–

The Company filed income tax returns in the United States federal tax jurisdiction and the Delaware state tax jurisdiction. Since the Company is in a loss carryforward position, it is generally subject to examination by federal and state tax authority for all tax years in which a loss carryforward is available.