8. Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 8 –      INCOME TAXES

The Company generated an operating loss for the three and nine months ended September 30, 2019 and 2018 and did not record income tax expense. 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

COSG is registered in the State of Nevada and is subject to the tax laws of United States of America

As of September 30, 2019, the operation in the United States of America incurred $2,155,600 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2039, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $452,676 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.

Hong Kong

The Company’s subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax at the two-tiered income tax rate 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 for the nine months ended September 30, 2019 and 2018 is as follows:

	Nine months ended September 30,
	2019			2018
Loss before income taxes	$	(57,695	)	$	5,568
Statutory income tax rate		8.25%			16.5%
Income tax expense at statutory rate		(4,759	)		918
Tax effect from non-deductible items		1,227			2,560
Tax effect from deductible items		(65	)		(2,588	)
Tax loss carryforwards		3,597			–
Tax adjustment		243			–
Income tax expense	$	243		$	890