INCOME TAX PAYABLE

3 Months Ended

Mar. 31, 2015

NOTE 5 - INCOME TAX PAYABLE

United States

Heyu leisure Holidays Corporation is incorporated in United States, and is subject to corporate income tax rate of 34%. As of March 31, 2015, the company has net operating losses of approximately $65,723 that begin expiring in 2031. The potential benefit of the company’s net operating losses has not been recognized in these financial statements because the company cannot be assured it is more likely-than-not it will utilize the net operating losses carried forward.

Hong Kong

Heyu Capital Limited is subject to Hong Kong profit tax at a rate of 16.5% in 2014 and 2015. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the period presented. As of March 31, 2014, HK entity has net operating losses of approximately $4,298,187. Valuation allowance has been fully provided since it is more likely-than-not it will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant.

China

Under the Law of People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. As of March 31, 2015, the PRC entities have net operating losses of approximately $661,490 that begin expiring in 2020. The potential benefit of the company’s net operating losses has not been recognized in these financial statements because it is more likely-than-not it will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant

	March 31, 2015		December 31, 2014
Deferred Tax Assets and Liabilities:
Net operating loss carry forwards	$	896,919	$	829,153
Valuation allowance		(896,919)		(829,153)
Net deferred tax assets	$	-	$	-

The Taxes payable was $29,627 and $31,280 as of December 31 2014 and March 31, 2015 respectively:

	As at March31, 2015		As at December 31, 2014

Business tax payable	$	20,171	$	19,126
Urban Construction tax payable		1,412		1,338
Others		9,697		9,163
	$	31,280	$	29,627

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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