INCOME TAXES

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE—8 INCOME TAXES

The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows:

United States of America

VIVC is registered in the State of Delaware and is subject to US federal corporate income tax. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented.

The reconciliation of income tax rate to the effective income tax rate based on (loss) income before income taxes for the six months ended June 30, 2020 and 2019 are as follows:

	Six months ended June 30,
	2020		2019
(Loss) income before income taxes	$	(181,230)	$	256,725
Statutory income tax rate		21%		21%
Income tax expense at statutory rate		(38,058)		53,912
Tax effect of allowance		38,058		(35,580)
Income tax expense	$	-	$	18,332

Taiwan

The Company’s Taiwan branch operating in Taiwan is subject to the Taiwan Profits Tax at the income tax rates ranging from 20% on the assessable income arising in Taiwan during its tax year.

The reconciliation of income tax rate to the effective income tax rate based on loss before income taxes for the six months ended June 30, 2020 and 2019 are as follows:

	Six months ended June 30,
	2020		2019
Loss before income taxes	$	(64,881)	$	-
Statutory income tax rate		20%		20%
Income tax expense at statutory rate		(12,976)		-
Net operating loss		12,976		-
Income tax expense	$	-	$	-

Hong Kong

The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the tax rates ranging from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year.

The reconciliation of income tax rate to the effective income tax rate based on loss before income taxes for the six months ended June 30, 2020 and 2019 are as follows:

	Six months ended June 30,
	2020		2019
Loss before income taxes	$	(32,569)	$	-
Statutory income tax rate		16.5%		16.5%
Income tax expense at statutory rate		(5,373)		-
Tax effect of non-taxable income		(1)
Net operating loss		5,374		-
Income tax expense	$	-	$	-

The People’s Republic of China

The Company’s subsidiary operating in The People’s Republic of China (“PRC) is subject to the PRC Income Tax at the unified rate of 25% on the assessable income arising in PRC during its tax year.

The reconciliation of income tax rate to the effective income tax rate based on loss before income taxes for the six months ended June 30, 2020 and 2019 are as follows:

	Six months ended June 30,
	2020		2019
Loss before income taxes	$	(88,105)	$	-
Statutory income tax rate		25%		25%
Income tax expense at statutory rate		(22,026)		-
Net operating loss		22,026		-
Income tax expense	$	-	$	-

The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
	(Unaudited)		(Audited)
Deferred tax assets on
Net operating loss carryforwards:
-     United States	$	38,058	$	-
-     Taiwan		12,976		7,365
-     Hong Kong		5,374		6,319
-     PRC		22,026		24,152
Less: valuation allowance		(78,434)		(37,836)
Deferred tax assets, net	$	-	$	-

As of June 30, 2020, the operations incurred $366,785 of cumulative net operating losses which can be carried forward to offset future taxable income. There is no expiry in net operating loss carryforwards. The Company has provided for a full valuation allowance against the deferred tax assets of $78,434 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.