TAXATION (Tables)

12 Months Ended

Dec. 31, 2014

TAXATION

Schedule of reconciliation between the effective income tax rate and the PRC statutory income tax rate

	Years ended December 31,
	2012			2013			2014
PRC statutory tax rate		25.0	%		25.0	%		25.0	%
Tax effect of other expenses that are not deductible in determining taxable profit		0.4	%		2.5	%		(1.1	)%
Effect of different tax rate of group entity operating in other jurisdictions		7.0	%		3.5	%		(94.5	)%
Effect of tax holidays granted to PRC subsidiaries, deferred income tax impact		(2.8	)%		(8.5	)%		42.5	%
Effect of tax holidays granted to PRC subsidiaries, current income tax impact		(13.9	)%		(13.7	)%		60.5	%
Effect of additional research and development of new technology, products, and processes ("R&D") deduction		(3.5	)%		(1.8	)%		20.9	%
Effect of valuation allowance		1.4	%		1.3	%		(30.1	)%
Withholding tax on undistributed earnings		—			21.8			120.4	%
Effect of adjustment of prior year tax benefit		(26.0	)%		(9.6	)%		28.5	%
Effective tax rate		(12.4	)%		20.5	%		172.1	%

Schedule of principal components of the Group's deferred income tax assets and liabilities

	December 31,
	2013			2014
Deferred tax assets:
Deferred revenue and advance from customers	$	2,738,502		$	3,413,330
Payroll payable and accrued expenses		639,491			890,948
Net operating losses		475,471			923,494
Advertising expenses		356,419			928,032
Other		292,192			422,975
Gross deferred tax assets:	$	4,502,075		$	6,578,779
Valuation allowances		(335,987	)		(705,962	)
Net deferred tax assets	$	4,166,088		$	5,872,817
Deferred tax liabilities:
U.S. GAAP related and amortization of intangible assets		229,540			698,800
Undistributed retained earnings of VIE		1,528,594			—
Net deferred tax liabilities	$	1,758,134		$	698,800
Deferred tax assets are analyzed as:
Current	$	4,166,088		$	5,872,817
Non-Current		—			—
	$	4,166,088		$	5,872,817
Deferred tax liabilities are analyzed as:
Current	$	1,758,134		$	698,800
Non-Current		—			—
	$	1,758,134		$	698,800