Quarterly report pursuant to Section 13 or 15(d)

Deferred Tax Assets

v3.19.2
Deferred Tax Assets
 3 Months Ended
Jun. 30, 2019
Deferred Tax Assets, Net [Abstract]  
Deferred Tax Assets

The Company is subject to taxation in the Russian Federation, Kazakhstan, Kyrgyzstan, Cyprus, Ukraine, Uzbekistan, Germany and the United States of America.

 

The tax rates used for deferred tax assets and liabilities as of June 30, 2019 and March 31, 2019 is 21% for the U.S., 20% for the Russian Federation, Kazakhstan, Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine and 12% for Uzbekistan.

 

Deferred tax assets and liabilities of the Company are comprised of the following:

 

   

June 30,

2019

    

March 31,

2019

  
             
Deferred tax assets:            
Tax losses carryforward   $ 2,451     $ 2,376  
Revaluation on trading securities     129       2,095  
Accrued liabilities     64       35  
Valuation allowance     (1,822 )     (3,241 )
Deferred tax assets   $ 822     $ 1,265  
                 
Deferred tax liabilities:                
Revaluation on trading securities   $ -     $ -  
                 
Deferred tax liabilities   $ -     $ -  
         
Net deferred tax assets   $ 822     $ 1,265  

 

During the three months ended June 30, 2019 and 2018, the effective tax rate was equal to 15.23% and (2.13%), respectively. The increase in effective tax rate was primarily attributable to a $10,713 and $6,002 increase in commissions earned by Freedom CY and Freedom RU, respectively, compared to the three months ended June 30, 2018

 

Tax losses carryforward as of June 30, 2019 and March 31, 2019 was $2,451 and $2,376, respectively, and is subject to income tax in US, Russia, Ukraine and Uzbekistan.