XML 66 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2012
Income Tax Tables  
Reconciliation of federal statutory income tax rate to our effective income tax rate

 

    Year ended December 31,  
    2012     2011  
             
U.S. Statutory rate   $ 9,118,943     $ 6,727,227  
Tax rate difference between China and U.S.     (2,703,421)     (2,037,985)
Change in Valuation Allowance     322,510       405,721  
Permanent difference     133,206       (5,678)
Effective tax rate   $ 6,871,238     $ 5,089,285  

 

Provisions for income taxes
The provisions for income taxes are summarized as follows:   Year ended December 31,  
    2012     2011  
Current   $ 6,787,529     $ 5,263,570  
Deferred     83,709       (174,285)
Total   $ 6,871,238     $ 5,089,285  

 

Net deferred tax asset

The tax effects of temporary differences that give rise to the Company's net deferred tax asset as of December 31, 2012 and 2011 are as follows:

 

    December 31,  
    2012     2011  
Net operating loss carryforward - United States   $ 748,750     $ 405,721  
Accrued expenses     46,527       172,844  
Others     23,529       1,441  
      818,806       580,006  
Less valuation allowance     (728,230)     (405,721)
Deferred tax assets   $ 90,576     $ 174,285