Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v3.23.2
INCOME TAXES
 12 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company is subject to taxation in the Unites States of America, Russia, Kazakhstan, Azerbaijan, Kyrgyzstan, Germany, Cyprus, Ukraine, United Kingdom, Armenia and Uzbekistan.
The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2023 and March 31, 2022, were 21% for the U.S., 20% for Russia, Kazakhstan, 20% for Azerbaijan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. This note is presented excluding the discontinued operations, which is presented separately in Note 30 "Assets and Liabilities Held for Sale".
As of March 31, 2023 and March 31, 2022, deferred tax assets and liabilities of the Company were comprised of the following:
March 31, 2023 March 31, 2022
(recast)
Deferred tax assets:
Revaluation on trading securities
Tax losses carryforward $ 1,548  $ 679 
Accrued liabilities 933  828 
Provision for impairment losses 2,079  — 
Stock compensation expenses —  — 
Deferred tax assets $ 4,560  $ 1,507 
Deferred tax liabilities:
Revaluation on trading securities $ 29  $ 210 
Fixed and Intangible Assets 2,457  — 
Other liabilities 326  388 
Deferred tax liabilities $ 2,812  $ 598 
Net deferred tax assets $ 2,442  $ 909 
Net deferred tax liabilities $ 694  $ — 
The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of of the amount computed by multiplying income before provision for income taxes at the 21% income tax rate compared to the Company's income tax expense as reported is as follows:
  Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021
  (recast) (recast)
Income before income tax at 21% $ 49,547  $ 76,376  $ 31,879 
Global intangible low taxed income 39,139  31,194  18,451 
Permanent differences 14,096  (2,567) (2,160)
Subpart F Income 4,732  —  — 
Stock based compensation 2,039  3,090  348 
Provision for impairment losses —  (13) 113 
Valuation allowance —  (316) (361)
Foreign tax rate differential (13,089) (18,544) (9,491)
Foreign tax credit (18,423) (16,200) (10,155)
Nontaxable gains (35,265) (34,450) (5,317)
Income tax expense $ 42,776  $ 38,570  $ 23,307 
As of March 31, 2023, 2022 and 2021, income tax expense was comprised of the following:
  Year ended March 31, 2023 Year ended March 31, 2022 Year ended March 31, 2021
(recast) (recast)
Current income tax charge
Federal 22,387  15,184  7,771 
Foreign 21,406  27,381  14,040 
43,793  42,565  21,811 
Deferred income tax charge
Federal (2,606) (2,191) 1,752 
Foreign 1,589  (1,804) (256)
(1,017) (3,995) 1,496 
Income tax expense $ 42,776  $ 38,570  $ 23,307