INCOME TAXES

6 Months Ended

Jun. 30, 2024

10. INCOME TAXES

For the six months ended June 30, 2024 and 2023, the local (United States) and foreign components of profit/(loss) before income taxes were comprised of the following:

	For the six months ended June 30, 2024			For the six months ended June 30, 2023

Tax jurisdictions from:
- Local	$	(24,937	)	$	(35,199	)
- Foreign, representing
Seychelles		(11,261	)		(3,178	)
Hong Kong		(2,003	)		(3,540	)
Malaysia		241,555			13,326

Profit/(Loss) before income tax	$	203,354		$	(28,591	)

The provision for income taxes consisted of the following:

SCHEDULE OF PROVISION FOR INCOME TAXES

	For the six months ended June 30, 2024			For the six months ended June 30, 2023
Current:
- Local	$	-		$	-
- Foreign		(4,543	)		(335	)

Deferred:
- Local		-			-
- Foreign		-			-

Income tax expense	$	(4,543	)	$	(335	)

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, Seychelles, Hong Kong and Malaysia that are subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of June 30, 2024, the operations in the United States of America incurred $549,062 of cumulative net operating losses which can be carried forward to offset future taxable income, at the tax rate of 21%. The net operating loss carry forwards begin to expire in 2038, if unutilized. The Company has provided for a full valuation allowance of $115,303 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

Seychelles

Under the current laws of the Seychelles, DSwiss Holding Limited is registered as an international business company which governs by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles.

Hong Kong

DSwiss (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income. As of June 30, 2024, the operations in the Hong Kong incurred $636,809 of cumulative net operating losses which can be carried forward to offset future taxable income, at the tax rate of 16.5%. The Company has provided for a full valuation allowance of $105,073 against the deferred tax assets on the expected future tax benefits from the net operating loss carry forwards as the management believes it is more likely than not that these assets will not be realized in the future.

Malaysia

DSwiss Sdn. Bhd. and DSwiss Biotech Sdn. Bhd. are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range from 15% to 24% on its assessable income. As of June 30, 2024, the operations in the Malaysia generated $29,392 of cumulative net operating profits.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

DSwiss Inc 10-Q