Income Taxes

3 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6. INCOME TAXES

A reconciliation of loss before income taxes for domestic and foreign locations for the three months ended June 30, 2020 and 2019 is as follows:

	For the three months ended June 30
	2020			2019
	(Unaudited)			(Unaudited)
United States	$	(16,580	)	$	(25,066	)
Foreign		(957,532	)		(86,171	)
(Loss) before income taxes	$	(974,112	)	$	(111,237	)

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

	June 30,			June 30,
	2020			2019
	(Unaudited)			(Unaudited)
U.S. federal statutory income tax rate		21	%		21	%
U.S. Valuation allowance		(21	)%		(21	)%
Rates for Tianci Liangtian and Yuxinqi, 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 Yuxinqi and Tianci Liangtian, in China.

As of June 30, 2020, Yuxinqi and Tianci Liangtian have total net operating loss carry forwards of $687,143 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 $171,786 and $165,787 related to its operations in the PRC as of June 30, 2020 and March 31, 2020, respectively. The PRC valuation allowance has increased by approximately $6,000 and $18,000 for the three months ended June 30, 2020 and 2019, respectively.

The Company has incurred losses from its United States operations during all periods presented of approximately $414,000. 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 $87,000 and $83,000 against the deferred tax assets related to the Company's United States operations as of June 30, 2020 and March 31, 2020, 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 $4,000 and $5,000 for the three months ended June 30, 2020 and 2019, 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	March 31, 2018

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 months ended June 30, 2020 and 2019.