Note 12 - Income Tax Expense

3 Months Ended

Jul. 31, 2016

Notes

Note 12 - Income Tax Expense

NOTE 12 – INCOME TAX EXPENSE

	Three months ended July 31, 2016	Three months ended July 31, 2015
Current income tax in PRC and Hong Kong	$49,440	$21,662
Deferred tax income	-	-
Total	$49,440	$21,662

On April 29, 2014, RTSH obtained a tax benefit for which the income tax for 2013 and 2014 calendar year is exempt and the income tax for 2015, 2016 and 2017 calendar year will be subject to half-rate deduction.

A reconciliation of the expected tax with the actual tax expense is as follows:

	Three months ended July 31, 2016	Three months ended July 31, 2015
(Loss)/ Profit before provision for income taxes	$(81,782)	$15,370
Expected PRC income tax expense at statutory tax rate of 25%	(20,445)	3,843
Different tax rate for PRC/Hong Kong local authority	20,476	6,657
Utilisation of tax losses brought forward	-	(47,434)
Tax loss not provided for deferred tax	49,409	58,596
Total	$49,440	$21,662

 (i) All PRC subsidiaries are subject to PRC tax. The provision for PRC income tax is based on a statutory rate of 25% of the assessable income of the PRC subsidiaries as determined in accordance with the relevant income tax rules and regulations of the PRC.

(ii) Hong Kong subsidiaries are subject to Hong Kong profits tax. The provision for Hong Kong profits tax is based on a statutory rate of 16.5% of assessable profits in Hong Kong.

(iii) BVI subsidiaries are not subject to profits tax.