Income Taxes

12 Months Ended

Jun. 30, 2025

10. INCOME TAXES

The Company is not an operating company but a holding company incorporated in the State of Nevada and is considered U.S. tax resident under U.S. tax laws; accordingly, it is subject to U.S. tax laws at a statutory tax rate of 21%. The Company is subject to the State of Nevada tax laws at a tax rate of 0%.

The Company’s net deferred income tax assets as of June 30, 2025and 2024 consist of net operating loss carry forwards. The net operating loss carry forwards for U.S. federal tax and Taiwan, China, Hong Kong tax purposes are available for carry forward indefinitely for use in offsetting taxable income. The U.S. federal net operating loss carry forward offset is limited to up to 80% of the taxable income.

As of June 30, 2025 and 2024, the Company had total net operating loss carry forwards of approximately $13,167,716 and $8,767,393, respectively, which consists of China net operating loss carry forwards of $4,896,250 and $3,817,009, respectively, Taiwan net operating losses of $5,824,336 and $4,200,888, respectively, Hong Kong net operating loss carry forwards of $94,686 and $5,014, respectively, and US net operating loss carry forwards of $2,352,444 and $744,480, respectively.

Taiwan

The Company’s operating subsidiary, Advanced Biomed Inc. (Taiwan) is considered Taiwan tax resident enterprises under Taiwan tax laws; accordingly, it is subject to enterprise income tax on its taxable income as determined under Taiwan tax laws at a statutory tax rate of 20%.

China

The Company’s operating subsidiary, Shanghai Sglcell Biotech Co., Ltd. is considered PRC resident enterprises under Enterprise Income Tax Law of the PRC; accordingly, it is subject to enterprise income tax on their taxable income as determined under Enterprise Income Tax Law of the PRC at a statutory tax rate of 25%.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, a two-tier corporate income tax system was implemented in Hong Kong, which is 8.25% for the first HK$2.0 million taxable income, and 16.5% for the subsequent taxable income generated from operations in Hong Kong. The Company’s subsidiary, Advanced Biomed HK Limited is considered Hong Kong tax resident under Hong Kong Tax Law; accordingly, it is subject to corporate income tax on its taxable income at 8.25% with nil and nil for the years ended June 30, 2025 and 2024.

The income tax provision consists of the following component:

	For the years ended June 30,
	2025		2024
	US$		US$
Income tax expense		-		-

The following table reconciles the operating profit to the Company’s effective tax rate:

	For the years ended June 30,
	2025			2024

Loss before tax		(3,258,969	)		(2,782,278	)
Statutory income tax rate		21	%		21	%
Income tax expense calculated at the statutory tax rate		-			-
Effect of tax losses carry forwards		(2,890,755	)		(2,019,708	)
Effect of subsidiaries foreign income		2,890,755			2,019,708
Income tax expense		-			-
Effective tax rate		-	%		-	%

The component of deferred tax assets are as follows:

	June 30, 2025			June 30, 2024
	US$			US$

Net operating losses carry forward		2,890,755			2,019,708
Valuation allowance		(2,890,755	)		(2,019,708	)
Deferred tax assets, net		-			-

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences.

A reconciliation of the differences between the federal income tax rate and the effective tax rate is as follows:

State of Nevada

	For the years ended June 30,
	2025			2024

Tax at federal statutory rate		21	%		21	%
Changes in valuation allowances		(21	)%		(21	)%
Provision for taxes		-	%		-	%

Taiwan

	For the years ended June 30,
	2025			2024

Tax at federal statutory rate		21	%		21	%
Different foreign subsidiary tax rate impact		(1	)%		(1	)%
Changes in valuation allowances		(20	)%		(20	)%
Provision for taxes		-	%		-	%

China

	For the years ended June 30,
	2025			2024

Tax at federal statutory rate		21	%		21	%
Different foreign subsidiary tax rate impact		4	%		4	%
Changes in valuation allowances		(25	)%		(25	)%
Provision for taxes		-	%		-	%

Hong Kong

	For the years ended June 30,
	2025			2024

Tax at federal statutory rate		21	%		21	%
Different foreign subsidiary tax rate impact		(12.75	)%		(12.75	)%
Changes in valuation allowances		(8.25	)%		(8.25	)%
Provision for taxes		-	%		-	%

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Advanced Biomed Inc. 10-K