Note

- Income Taxes

The Company and its subsidiary file separate income tax returns.

The United States of America

FingerMotion, Inc. is incorporated in the State of Delaware in the U.S., and is subject to a gradual U.S. federal corporate income tax of

21%.

The Company generated a taxable loss for the

nine

months ended

November 30, 2018

and

2017,

and which is subject to U.S. federal corporate income tax rate of

21%

and

34%,

respectively.

Hong Kong

Finger Motion Company Limited is incorporated in Hong Kong and Hong Kong’s profits tax rate is

16.5%

Finger Motion Company Limited did

not

earn any income that was derived in Hong Kong for the

nine

months ended

November 30, 2018

and

2017.

The People’s Republic of China (PRC)

JiuGe Management and JiuGe Technology were incorporated in the People’s Republic of China and subject to PRC income tax at

25%

JiuGe Management and JiuGe Technology did

not

generate taxable income in the People’s Republic of China for the

nine

months ended

November 30, 2018.

Income tax mainly consists of foreign income tax at statutory rates and the effects of permanent and temporary differences. The Company’s effective income tax rates for the

nine

months ended

November 30, 2018

and

2017

are as follow:

	For the nine months ended November 30 ,
	2018			2017
	(Unaudited)			(Unaudited)
U.S. statutory tax rate		21.0	%		34.0	%
Foreign income not registered in the U.S.		(21.0	%)		(34.0	%)
PRC profit tax rate		25.0	%		25.0	%
Changes in valuation allowance and others		(25.0	%)		(34.0	%)
Effective tax rate		0.0	%		0.0	%

As of

November 30, 2018

and

February 28, 2018,

the Company has a deferred tax asset of

$236,331

and

$367,735,

resulting from certain net operating losses in U.S., 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. At present, the Company concludes 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. As of

November

31,

2018

and

February 28, 2018,

the valuation allowance was

$236,331

and

$367,735,

respectively.

	November 30 ,			February 28,
	2018			2018

Deferred tax asset from operating losses carry-forwards	$	236,331		$	367,735
Valuation allowance		(236,331	)		(367,735	)
Deferred tax asset, net	$	-		$	-