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Income Tax Provision
12 Months Ended
Dec. 31, 2014
Income Tax Provision [Text Block]

Note 9 – Income Tax Provision

DLD Group Inc ("DLD Group") is a non-operating holding company. The Company’s consolidated subsidiary, DLD HK is subject to Hong Kong corporation income tax laws, its PRC VIEs and VIE subsidiaries are subject to the PRC income tax provision, file income tax returns under the Corporation Income Tax Law of the People’s Republic of China (the “PRC Corporation Income Tax Law”) accordingly. Substantially all of the Company’s income before income tax provision and related income tax expense, if any, are from PRC sources.

United States Income Tax

DLD Group is incorporated in the State of New York and is subjected to United Sates of America tax law.

Limitation on Utilization of NOLs due to Change in Control

Pursuant to the Internal Revenue Code Section 382 (“Section 382”), certain ownership changes may subject the NOL’s to annual limitations which could reduce or defer the NOL. Section 382 imposes limitations on a corporation’s ability to utilize NOLs if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382 determined by multiplying the value of its stock at the time of the ownership change by the applicable long-term tax-exempt rate. Any unused annual limitation may be carried over to later years. The imposition of this limitation on its ability to use the NOLs to offset future taxable income could cause the Company to pay U.S. federal income taxes earlier than if such limitation were not in effect and could cause such NOLs to expire unused, reducing or eliminating the benefit of such NOLs.

BVI Income Tax

Under the current BVI tax law, DLD BVI’s income, if any, is not subject to taxation.

HK Income Tax

Under the current Hong Kong (Special Administrative Region) tax laws, DLD HK's income, if any, is subject to Hong Kong corporation income tax at the rate of 16.5% .

PRC Income Tax

The Company’s PRC consolidated VIEs, DLD Technology, Henan DLD and STSW, file income tax returns under the Corporation Income Tax Law of the People’s Republic of China (the “PRC Corporation Income Tax Law”), which is 25% for both domestic and foreign-invested companies.