The Company and its subsidiaries file separate income tax returns. The Company and one subsidiary which was discontinued in cooperation, are incorporated in the United States, and are subject to United States federal and state income taxes. The Company did not generate taxable income in the United States in 2018 and 2017. Two subsidiaries are incorporated in Hong Kong, and are subject to Hong Kong Profits Tax at 16.5% for the twelve months ended December 31, 2018 and 2017. Provision for Hong Kong profits tax of $1,389 has been made for the year presented as there is one subsidiary has assessable profits during the year. One subsidiary is incorporated in PRC, and is subject to PRC Income Tax at 25% for the twelve months ended December 31, 2018 and 2017. Provision for PRC Income Tax has not been made for the year presented as the subsidiary has no assessable profits during the year.

Deferred taxes are determined based on the temporary differences between the financial statement and income tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. For the year ended December 31, 2018 and 2017, the Group has tax loss carrying-forwards, which does not recognize deferred tax assets as it is not probable that future taxable profits against which the losses can be utilized will be available in the relevant tax jurisdiction and entity.

The Company did not have U.S, taxable income due to operating in Hong Kong SAR and PRC.

A reconciliation of the provision for income taxes with amounts determined by applying the Hong Kong profits rate of 16.5% to income before income taxes is as follows:


		December 31, 2018		December 31, 2017

Profit /(Loss) before income tax	$	20,301	$	(62,920)
Temporary Difference		-		-
Permanent Difference		(2)		-
Taxable income (loss)	$	20,299	$	(62,920)
Hong Kong Income Tax rate		16.5%		16.5%
Current tax expenses	$	(3,349)	$	10,382
Less: Valuation allowance		1,960		(10,382)

Income tax expenses	$	1,389	$	-

A reconciliation of the losses before income tax of $(20,455) and $(9,025) for the year ended December 31, 2018 and 2017, respectively, were attributed to operations in China, the income tax expenses consisted of the following:


		December 31, 2018			December 31, 2017

Loss before income tax	$	(27,529)		$		(12,195)
Temporary Difference		-				-
Permanent Difference		-				-
Taxable (loss)/ income	$	(27,529)		$		(12,195)
China Enterprise Income Tax rate		25.0%				25.0%
Current tax credit	$	6,882		$		3,049
Less: Valuation allowance		(6,882)				(3,049)

Income tax expenses	$	-	$		-