INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2021

INCOME TAXES

Schedule of income tax provision

The income tax provision consists of the following components:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Current:
Federal	$	—	$	—	$	—	$	—
State		—		—		—		—
Foreign		(10,947)		—		—		101,738
Total Current	$	(10,947)	$	—	$	—	$	101,738
Deferred:
Federal	$	—	$	—	$	—	$	—
State		—		—		—		—
Foreign		94,839		(631)		90,485		(7,513)
Total Deferred	$	94,839	$	(631)	$	90,485	$	(7,513)
Total income tax (benefit) expense	$	83,892	$	(631)	$	90,485	$	94,225

Schedule of Company's actual provision for income taxes

A reconciliation between the Company’s actual provision for income taxes and the provision at the Hong Kong statutory rate is as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
(Loss) income before income tax expense	$	(1,908,788)	$	81,447	$	(9,700,614)	$	(791,828)
Computed tax benefit with statutory tax rate		(400,844)		13,440		(2,037,129)		(130,651)
Impact of different tax rates in other jurisdictions		766		16,109		1,864		14,432
Impact of preferred tax rate		(158,079)		7,729		(152,689)		62,248
U.S. tax on foreign entities		213,238		—		213,238		—
Tax effect of non-deductible expenses		31,084		153,619		95,459		337,519
Changes in valuation allowance		524,905		(204,420)		2,098,066		(338,577)
Others		(127,178)		12,892		(128,324)		149,254
Total income tax expense (benefit)	$	83,892	$	(631)	$	90,485	$	94,225

Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions

The reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:

	September 30,		December 31,
	2021		2020
Uncertain tax liabilities, beginning of period	$	101,789	$	101,789
Settlements with tax authority during current year		(101,789)		—
Uncertain tax liabilities, end of period	$	—	$	101,789