INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income from Continuing Operations Before Income Taxes

Income (loss) from continuing operations before income taxes was allocated between the U.S. and foreign components for the year ended December 31, 2016 and 2015:

	For the years ended December 31,
	2016		2015

United States	$	(1,010,848)	$	(1,833,064)
Foreign		126,541,875		29,733,565
	$	125,531,027	$	27,900,501

Components of Income Tax Provision

Significant components of the income tax provision were as follows for the years ended December 31, 2016 and 2015:

	For the years ended December 31,
	2016		2015
Current tax provision
Federal	$	-	$	-
State		-		-
Foreign		33,055,811		4,488,815
		33,055,811		4,488,815

Deferred tax provision (benefit)
Federal		-		-
State		-		-
Foreign		(428,101)		1,849,910
		(428,101)		1,849,910
Income tax provision	$	32,627,710	$	6,338,725

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and deferred tax liability as of December 31, 2016 and 2015 consist of the following:

	As of December 31,
	2016		2015
Deferred tax assets:
Deferred tax assets from net operating losses from parent company	$	5,698,869	$	5,335,180
Valuation allowance		(5,698,869)		(5,335,180)
	$	-	$	-

Deferred tax liability:
Deferred tax liability from capitalized interest	$	-	$	1,774,993
Deferred financing costs on the loans		1,971,192	$	-
Other temporary differences		(721,570)		-
Deferred income tax liability	$	1,249,622	$	1,774,993

Schedule of Effective Income Tax Rate

The following table reconciles the U.S. statutory rates to the Company’s effective rate for the years ended December 31, 2016 and 2015:

	For the years ended December 31,
	2016			2015
US statutory rate		34	%		34	%
Foreign income and loss not recognized in U.S.A.		(34)	%		(34)	%
China income tax		25	%		25	%
Miscellanies and non-deductible expense		1	%		(2.3)	%
Effective tax rate		26	%		22.7	%