Income Taxes

9 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6. INCOME TAXES

A reconciliation of loss before income taxes for domestic and foreign locations for the nine months ended December 31, 2019 and 2018 is as follows:

	For the nine months ended December 31,
	2019			2018
	(Unaudited)			(Unaudited)
United States	$	(131,884	)	$	(87,486	)
Foreign		(215,622	)		(686,092	)
(Loss) before income taxes	$	(347,506	)	$	(773,578	)

	For the three months ended December 31,
	2019			2018
	(Unaudited)			(Unaudited)
United States	$	(58,029	)	$	(31,692	)
Foreign		(13,448	)		(14,228	)
(Loss) before income taxes	$	(71,477	)	$	(45,920	)

The difference between the U.S. federal statutory income tax rate and the Company's effective tax rate was as follows:

	December 31,			December 31,
	2019			2018
	(Unaudited)			(Unaudited)
U.S. federal statutory income tax rate		21	%		21	%
U.S. Valuation allowance		(21	)%		(21	)%
Rates in PRC, net		25	%		25	%
PRC Valuation allowance		(25	)%		(25	)%
The Company's effective tax rate		(0	)%		(0	)%

The Company did not recognize deferred tax assets since it is not likely to realize such deferred taxes. The deferred tax would apply to the Company in the U.S. and the companies, Yuxinqi and Tianci Liangtian, in China.

As of December 31, 2019, Yuxinqi and Tianci Liangtian have total net operating loss carry forwards of $646,490 in the PRC that expire in 2024. Due to the uncertainty of utilizing these carry forwards, the Company provided a 100% allowance on all deferred tax assets of approximately $161,623 and $99,774 related to its operations in the PRC as of December 31, 2019 and March 31, 2019, respectively. The PRC valuation allowance has increased by approximately $65,000 and $161,000 for the nine months, and $27,000 and $4,000 for the three months, ended December 31, 2019 and 2018, respectively.

The Company has incurred losses from its United States operations during all periods presented of approximately $337,000. The Company's United States operations consist solely of ownership of its foreign subsidiaries, and the losses arise from administration expenses. Accordingly, management provided a 100% valuation allowance of approximately $71,000 and $43,000 against the deferred tax assets related to the Company's United States operations as of December 31, 2019 and March 31, 2019, respectively, because the deferred tax benefits of the net operating loss carry forwards in the United States will not likely be utilized. The US valuation allowance has increased by approximately $28,000 and $18,000 for the nine months, and $12,000 and $7,000 for the three months, ended December 31, 2019 and 2018, respectively.

The Company is subject to examination by the Internal Revenue Service (IRS) in the United States as well as by the taxing authorities in China, where the firm has significant business operations. The tax years under examination vary by jurisdiction. The table below presents the earliest tax year that remain subject to examination by major jurisdiction.

	The year as of
U.S. Federal	March 31, 2019
China	January 31, 2015

United States

The Company is subject to the U.S. corporation tax rate of 21%.

Samoa

Organic Agricultural (Samoa) Co., Ltd was incorporated in Samoa and, under the current laws of Samoa, it is not subject to income tax.

China

Tianci Liantian and Yuxinqi are subject to a 25% standard enterprise income tax in the PRC. There was no provision for income taxes for the three and nine months ended December 31, 2019 and 2018.

Lvxin products sales and services are exempt from enterprise income tax, according to the "PRC Income Tax Law" Article 27 (1), which states that income from agricultural, forestry, animal husbandries and the fisheries Industries shall be exempt from business income taxes.