INCOME TAXES

12 Months Ended

May 31, 2024

NOTE 7 - INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of May 31, 2024 and 2023, are as follows:

	May 31,			May 31,
	2024			2023
Net operating loss carry forward	$	599,343		$	534,242
Statutory tax rate		21	%		21	%
Deferred tax asset	$	125,862		$	112,191
Less: Valuation allowance		(125,862	)		(112,191	)
Net deferred asset		-			-

As of May 31, 2024, the Company had approximately $599,000 in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2034 and 2038. NOLs generated in tax years prior May 31, 2018, can be carryforward for twenty years, whereas NOLs generated after May 31, 2018 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2014 through 2024 are subject to review by the tax authorities.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Startech Labs, Inc. 10-K