XML 50 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Taxes [Abstract]  
Summary of differences between the PRC statutory federal rate and the Company's effective tax rate
 
For the year ended December 31,
 
   
2013
   
2012
 
Tax computed at China statutory rates
    25 %     25 %
Effect of reduced rate on Joway Decoration (1)
    0       (6 %)
Tax adjustment from China tax authority for 2012 income tax  (2)
    (4 %)     0  
Effect of losses
    (26 %)     (20 %)
Effective rate
    (5 %)     (1 %)
 
(1)
Prior to 2013, pursuant to Measures for Verification Collection of Enterprise Income Tax issued by the PRC State Administration of Taxation, Joway Decoration, as a wholesale and retail enterprise, is subject to taxable income at a verified rate of 5% of revenue.
(2)
The Company’s 2012 Corporate Income Tax Filing in China was reviewed by the PRC tax authority and reduced the Company’s income tax deduction for the 2012 taxable year. As a result, the Company paid additional income tax of $62,896.
Schedule of deferred income tax asset
   
As of December 31,
 
   
2013
   
2012
 
Deferred income tax asset:
           
Net operating loss carry forwards
 
$
796,000
   
$
290,000
 
Valuation allowance
   
(796,000
)
   
(290,000
)
Total
 
$
-
   
$
-