The income (loss) before income taxes of the Company for the years ended September 30, 2019 and 2018 were comprised of the following:

	For the years ended September 30,
	2019		2018
Tax jurisdictions from:
- Local	$	(77,518)	$	(31,243)
- Foreign, representing:
Hong Kong		(1,332)		(929)
PRC		-		-

Loss before income taxes	$	(78,850)	$	(32,172)

	For the years ended September 30,
	2019		2018
Current:
- Local	$	-	$	-
- Foreign:
Hong Kong		-		-
PRC		-		-

Deferred:
- Local		-		-
- Foreign:	$	-	$	-

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. During the periods presented, the Company has a number of subsidiaries that operates in different countries and is subject to tax in the jurisdictions in which its subsidiaries operate, as follows:

The Tax Act reduces the U.S. statutory corporate tax rate from 35% to 21% for our tax years beginning in 2018, which resulted in the re-measurement of the federal portion of our deferred tax assets as of September 30, 2019 and 2018 from the 35% to 21% tax rate. The Company is registered in the State of Nevada and is subject to United States of America tax law. As of September 30, 2019, the operations in the United States of America incurred $188,351 of cumulative net operating losses (NOL’s) which can be carried forward to offset future taxable income. The NOL carryforwards begin to expire in 2039, if unutilized. The Company has provided for a full valuation allowance of approximately $39,554 against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Ando Automobile Technology Limited and Ando Capital Investment Limited operating in Hong Kong are subject to the Hong Kong Profits Tax at the statutory income tax rate of 8.25% on assessable profits up to HK$2,000,000; and 16.5% on any part of assessable profits over HK$2,000,000. For the year ended September 30, 2019 and 2018, subsidiaries in Hong Kong incurred an aggregate operating loss of $1,332 and $929 respectively. The cumulative operating losses can be carried forward to offset future taxable income. The Company has provided for a full valuation allowance against the deferred tax assets of $261 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.

Xian Ando Holdings Company Limited and Xian Ando Commercial Factoring Company Limited are operating in the PRC subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. For the year ended September 30, 2019 and 2018, Xian Ando Holdings Company Limited and Xian Ando Commercial Factoring Company Limited recorded no loss or profit. As a result, there is no any deferred tax assets or liabilities recorded.

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of September 30, 2019 and September 30, 2018:

Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $39,815 as of September 30, 2019. For the year ended September 30, 2019, the valuation allowance increased by $16,380, primarily relating to the increase in general and administrative expenses.