Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes [Text Block]

12.	Income Taxes
	All of the Company’s continuing operations are located in the PRC. The corporate income tax rate in the PRC is 25%.
	The following tables provide the reconciliation of the differences between the statutory and effective tax expenses following as of December 31, 2018 and 2017:

		12/31/2018			12/31/2017
Loss attributed to PRC continuing operations	$	(492,419	)	$	(46,791,320	)
Income attributed to BVI		423,338			-
Loss attributed to U.S. operations		(80,000	)		(399,590	)
Loss before tax	$	(149,081	)	$	(47,190,910	)
PRC Statutory Tax at 25% Rate		(123,105)			(11,697,830)
Non-deductible GAAP expenses in the PRC		287,489			11,859,022
Income tax	$	164,384		$	161,192
Per Share Effect of Tax Exemption
		12/31/2018			12/31/2017
Effect of tax exemption granted	$	-		$	-
Weighted-Average Shares Outstanding Basic		2,978,233			1,530,980
Per share effect	$	-		$	-

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows as of December 31, 2018 and 2017:

	12/31/2018	12/31/2017
U.S. federal statutory income tax rate	21.00%	35%
Higher (lower) rates in PRC, net	4.00%	-10%
Non-recognized deferred tax benefits in the PRC	-25.00%	-25.21%
The Company’s effective tax rate	0.00%	-0.21%