Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

13. INCOME TAXES

For the years ended December 31, 2020 and December 31, 2019, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

	For the year ended December 31,
	2020			2019
Tax jurisdictions from:	$			$
- Local		(71,205	)		(21,841	)
- Foreign, representing
Seychelles		-			-
Hong Kong		(24,067	)		(23,442	)
China (CETL)		2			63
China		(2,737,550	)		(2,103,759	)
Income/(loss) before income tax	$	(2,832,820	)	$	(2,148,979	)

The provision for income taxes consisted of the following:

	For the year ended December 31,
	2020		2019
Current:	$		$
- Local		-		-
- Foreign		-		-
Deferred:
- Local		-		-
- Foreign		-		-
Income tax expense	$		$	-

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. the Company has subsidiaries that operate in various countries: United States, Seychelles, Hong Kong and China that are subject to taxes in the jurisdictions in which they operate, as follows:

United States of America

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America and the tax rate is 21%. As of December 2020, the operations in the United States of America incurred $71,205 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 of $0 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.

Seychelles

Under the current laws of the Seychelles, Ezagoo Holding Limited is registered as an international business company which governs by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles.

Hong Kong

Ezagoo (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income.

People’s Republic of China

Changsha Ezagoo Technology Limited and Beijing Ezagoo Zhicheng Internet Technology Limited (formerly known as Hunan Ezagoo Zhicheng Internet Technology Limited) are operating in the People’s Republic of China (“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%.

	As of December 31,
	2020			2019
Deferred tax assets:	$			$
Net operating loss carryforwards
– United States of America		14,953			4,587
– Hong Kong		3,971			3,868
– The PRC (CETL)		(1	)		(16	)
– The PRC		684,388			525,939
		703,311			534,378
Less: valuation allowance		(703,311	)		(534,378	)
Deferred tax assets	$	-		$	-