Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES

v3.25.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Group is subject to taxation in Kazakhstan, Kyrgyzstan, Cyprus, Uzbekistan, Germany, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom and the United States of America.
The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2025 and March 31, 2024, were 21% for the United States, 20% for Kazakhstan and Azerbaijan, 18% for Tajikistan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 25% for Turkey, 25% for United Kingdom, 9% United Arab Emirates, 18% for Armenia and 15% for Uzbekistan.
As of March 31, 2025 and March 31, 2024, deferred tax assets and liabilities of the Company were comprised of the following:
Year ended March 31, 2025
 Year ended March 31, 2024
Deferred tax assets:
Revaluation on trading securities $ —  $ 454 
Tax losses carryforward 4,871  3,809 
Deferred acquisition costs and insurance reserves 6,669  — 
Provision for impairment losses 12,181  8,210 
Deferred tax assets $ 23,721  $ 12,473 
Deferred tax liabilities:
Revaluation on trading securities $ 874  $ 1,447 
Fixed and Intangible Assets 4,425  7,535 
Other liabilities 1,038  335 
Deferred tax liabilities $ 6,337  $ 9,317 
Net deferred tax assets $ 17,446  $ 3,222 
Net deferred tax liabilities $ 62  $ 66 
The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation 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, 2025 Year ended March 31, 2024 Year ended March 31, 2023
 
Income before income tax at 21% $ 23,719  $ 91,428  $ 49,547 
Global intangible low taxed income 65,308  60,323  39,139 
Stock based compensation 10,597  4,601  2,039 
Subpart F Income 4,750  6,887  4,732 
Permanent differences 4,158  58,872  14,096 
Top-up tax 3,743  —  — 
Foreign tax rate differential (18,944) (17,665) (13,089)
Foreign tax credit (21,118) (14,915) (18,423)
Nontaxable gains (43,788) (129,112) (35,265)
Income tax expense $ 28,425  $ 60,419  $ 42,776 
As of March 31, 2025 and 2023, income tax expense was comprised of the following:
  Year ended March 31, 2025 Year ended March 31, 2024 Year ended March 31, 2023
Current income tax charge
Federal 4,054  34,623  22,387 
Foreign 44,341  24,573  21,406 
48,395  59,196  43,793 
Deferred income tax charge
Federal (12,715) 3,695  (2,606)
Foreign (7,255) (2,472) 1,589 
(19,970) 1,223  (1,017)
Income tax expense $ 28,425  $ 60,419  $ 42,776 
During the years ended March 31, 2025, March 31, 2024 and March 31, 2023, the Company realized net income before income tax $112,946, $435,371 and $235,938, respectively. During the same periods, the Company's effective tax rate was equal to 25.2%, 13.9% and 18.1%, respectively. Tax years ended from March 31, 2025 to March 31, 2020 are remains subject to examination by major tax jurisdictions.
Income before income taxes includes the following components:
  Year ended March 31, 2025 Year ended March 31, 2024 Year ended March 31, 2023
United States $ (61,060) $ (66,053) $ (26,383)
Foreign 174,006  501,424  262,321 
Net income before income tax $ 112,946  $ 435,371  $ 235,938 
As of March 31, 2025, the Company had undistributed earnings of certain foreign subsidiaries of $887,924. The Company intends to reinvest its foreign earnings indefinitely in the non-U.S. operations and therefore has not provided for any non-U.S. withholding tax that would be assessed on dividend distributions. The determination of the U.S. state income taxes upon a potential foreign earnings distribution is impractical. In the event the earnings were distributed to the U.S., the Company would adjust its income tax provision for the period and would determine the amount of foreign tax credit that would be available.
Tax loss carryforwards as of March 31, 2025 and March 31, 2024, was $27,280 and $30,472, respectively, in Cyprus and Kazakhstan.