Taxation (Tables)

6 Months Ended

Jun. 30, 2018

The components of the provision for income taxes expense are:

The reconciliation of income taxes expenses computed at the PRC statutory tax rate to income tax expense is as follows:

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	$		$		$		$
Income before tax		3,123,636		5,057,908		1,995,021		8,258,215

Provision for income taxes at PRC statutory income tax rate (25%)		780,909		1,264,477		498,755		2,064,554
Impact of different tax rates in other jurisdictions		37,886		3,382		96,546		6,637
Effect of PRC preferential tax rate		(272,880)		(397,140)		(266,427)		(788,983)
R&D expenses eligible for super deduction		(334,892)		(442,939)		(334,892)		(442,939)
Other non-deductible expenses		32,175		17,448		48,751		33,995
Change in valuation allowance of deferred tax assets		166,123		150,480		356,909		310,209
Effective enterprise income tax expenses		409,321		595,708		399,642		1,183,473

The following represents the tax effect of each major type of temporary difference.

	June 30,		December 31,
	2018		2017
	(Unaudited)
	$		$
Tax loss carry-forward		1,767,265		991,766
Allowance for doubtful receivables		64,294		136,562
Impairment for inventory		296,516		222,289
Difference for sales cut-off		10,489		17,322
Deferred government grant		113,709		46,446
Property, plant and equipment subsidized by government grant		255,070		269,344
Impairment for property, plant and equipment		57,273		58,304
Total gross deferred tax assets		2,564,616		1,742,033
Valuation allowance		(1,345,095)		(991,766)
Total net deferred tax assets		1,219,521		750,267