NOTE 3 - INCOME TAXES

3 Months Ended

Dec. 31, 2016

Equity [Abstract]

Income taxes

nOTE 3 - Income taxes

The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority.

National income tax in Japan is charged at 15% of a company’s assessable profit. The Company’s subsidiary, School TV, was incorporated in Japan and is subject to Japanese National income tax and city income tax at the applicable tax rates on the taxable income as reported in their Japanese statutory accounts in accordance with the relevant enterprises income tax laws applicable to foreign enterprises.

For the three months ended December 31, 2016, income tax of School TV was $410 (JPY 44,956) and income tax payable was $385 (JPY 44,956). The effective income tax rate of School TV is 15%.

Exceed World, Inc., which acts as a holding company on a non-consolidated basis, does not plan to engage any business activities and current or future loss will be fully allowed. For the three months ended December 31, 2016 and twelve months ended September 30, 2015, Exceed World, Inc., as a holding company registered in the state of Delaware, has incurred net losses and, therefore, has no tax liability.