Income Taxes

9 Months Ended

Sep. 30, 2018

Income Taxes [Abstract]

INCOME TAXES

13. INCOME TAXES

The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows:

United States

Consumer Capital Group Inc. was incorporated in United States, and is subject to corporate income tax rate of 21%.

The People’s Republic of China (PRC)

Arki Beijing E-commerce Technology Corp., America Pine Beijing Bio-Tech, Inc., America Arki (Fuxin) Network Management Co. Ltd., America Arki Network Service Beijing Co. Ltd. and America Arki (Tianjin) Capital Management Partnership were incorporated in the People’s Republic of China and subject to PRC income tax at 25%. The Company did not generate taxable income in the People’s Republic of China for the nine months ended September 30, 2018 and 2017, respectively.

Yin Hang Financial Information Service (Shanghai) Co., Limited was incorporated in the People’s Republic of China and subject to PRC income tax at 25%.

The new EIT Law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous income tax regulations.

The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows:

		For the three months ended September 30,						For the nine months ended September 30,
		2018			2017			2018			2017
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
	Tax expense at statutory rate US		21	%		34	%		21	%		34	%
	Foreign income not recognized in the U.S.		(21	)%		(34	)%		(21	)%		(34	)%
	PRC enterprise income tax rate		25	%		25	%		25	%		25	%
Changes in valuation allowance and others		(25	)%		(25	)%		(25	)%		(25	)%
	Effective income tax rates		-			-			-			-

Loss before income taxes from continuing operations consists of:

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Non-PRC	$	(27,565	)	$	627,774		$	(63,242	)	$	447,873
PRC		(670,085	)		(1,374,377	)		(1,756,529	)		(2,925,595	)
Total	$	(697,650	)	$	(746,603	)	$	(1,819,770	)	$	(2,477,722	)

The principal components of the Company’s deferred income tax assets and liabilities are as follows: 

47,275

	September 30,  2018			December 31,  2017
	(Unaudited)
Deferred tax assets:
Accrued interest payable	$	21,873		$	23,089
Accrual		32,596			34,409
Provision for loan losses		19,402			-
Total deferred tax assets		73,871			57,498
Less: Valuation allowance		(73,871	)		(57,498	)
Net total deferred tax assets	$	-		$	-
Deferred tax liabilities:
Accrued interest receivable	$	34,323		$	36,232
Accrued interest payable		44,784
Net total deferred liabilities	$	79,107		$	83,507

As of September 30, 2018 and December 31, 2017, the Company has a deferred tax asset of $73,871 and $57,498, and a deferred tax liability of $79,107 and $83,507 resulting from certain net operating losses in the PRC, respectively. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those net operating losses are available. The Company considers projected future taxable income and tax planning strategies in making its assessment. As of September 30, 2018 and December 31, 2017, the Company did not have sufficient operations to generate taxable income in Arki Beijing, America Pine Beijing, Arki Fuxin, Arki Network Service and Arki Tianjin to conclude that it is more-likely-than-not that the Company will be able to realize all of its tax benefits in the near future and therefore a valuation allowance has been provided for the full value of the deferred tax asset. A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation allowance. Should Arki Beijing, America Pine Beijing, Arki Fuxin, Arki Network Service, Arki Tianjin and Yin Hang have sufficient operation to generate taxable income in future periods with a supportable trend; the valuation allowance will be reduced accordingly. As of September 30, 2018 and December 31, 2017, $73,871 and $57,498 valuation allowance was recorded respectively.