TAXES (Tables)

12 Months Ended

Jul. 31, 2020

TAXES

Schedule of reconciliation of statutory rate to effective tax rate

The following table reconciles the statutory rate to the Company’s effective tax rate:

	For the years ended July 31,
	2020	2019	2018
	%	%	%
China income tax rate	25.0	25.0	25.0
Rate differential	(12.6)	15.8	—
Permanent difference on non-deductible expenses	(0.1)	0.1	1.9
Utilization of the VIE’s Net Operating Loss (“NOL”) from prior years	—	(1.7)	—
Change in valuation allowance	(12.7)	—	—
Effective tax rate	(0.4)	39.2	26.9

Schedule of income tax excepses

The income tax expenses consists of the following:

	For the years ended July 31,
	2020		2019		2018
Current income tax provision
BVI	$	—	$	—	$	—
Hong Kong		—		—		—
China		—		276,823		716,816
Subtotal		—		276,823		716,816
Deferred income tax provision
BVI		—		—		—
Hong Kong		—		—		—
China		76,264		—		—
Total income tax provision	$	76,264	$	276,823	$	716,816

Schedule of components of company's deferred tax assets

The Company’s deferred tax assets are comprised of the following:

	July 31, 2020						July 31, 2019
	ATIF		LGC		Total		ATIF
Deferred tax assets:
Net operating loss carry forwards	$	746,024	$	816,747	$	1,562,771	$	—
Allowance for doubtful account		212,010		438,350		650,360		—
Deferred tax assets before valuation allowance		958,034		1,255,097		2,213,131		—
Less: valuation allowance		(958,034)		(1,255,097)		(2,213,131)		—
Net deferred tax assets	$	—	$	—	$	—	$	—

Schedule of taxes payable

The Company’s taxes payable consists of the following:

	July 31, 2020						July 31, 2019
	ATIF		LGC		Total		ATIF
Value added tax payable	$	73,031	$	186,028	$	259,059	$	91,978
Income tax payable		584,503		3,001,124		3,585,627		574,778
Other tax payable		2,582		156,896		159,478		2,313
Total taxes payable	$	660,116	$	3,344,048	$	4,004,164	$	669,069