Income Tax

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax

12. INCOME TAX

The Company is a U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as the Company had no United States taxable income for the period ended June 30, 2019.

Wisdom Global Group Co., Limited was incorporated in the Republic of Seychelles and, under the laws of Seychelles, is not subject to income taxes.

The Company operates in Hong Kong and files tax returns in the Hong Kong jurisdiction. Wiseman Global Limited was incorporated in Hong Kong and is subject to Hong Kong income tax at a tax rate of 16.5%. (the first HKD 2 million (equivalent USD 258,000) of profits earned by the company will be taxed at half the current tax rate (i.e., 8.25%) whilst the remaining profits will continue to be taxed at the existing 16.5% tax rate.)

Wiseman Shenzhen were incorporated in the PRC and with the enterprise income tax rate of 25%.

No deferred taxes were recognized for the period ended June 30, 2019.

Provision for income tax expense will be projected at year end date.

Effective and Statutory Rate Reconciliation

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 following table summarizes a reconciliation of the Company’s income taxes expenses:

	For the period ended June 30, 2019
	(unaudited)
PRC statutory tax rate		25	%
Temporary differences not recognized		64	%
Effect of foreign tax rate difference		53	%
Tax losses not recognized		(142	)%
Income tax expense	$	0	%

	For the period ended June 30, 2019
	(unaudited)
PRC statutory tax rate		25	%
Computed expected benefit	$	(2,519	)
Temporary differences not recognized		(6,447	)
Effect of foreign tax rate difference		(5,343	)
Tax losses not recognized		14,309
Income tax expense	$	0

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of June 30, 2019:

	As of June 30, 2019
	(unaudited)
Deferred tax assets:
Net operating loss carry forwards
- United States of America	$	24,740
- Hong Kong		-
- PRC		-
Less: valuation allowance	$	(24,740	)
Deferred tax assets	$	-

Value Added Tax (“VAT”)

In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 17%, which is levied on the invoiced value of sales and is payable by the purchaser. Wiseman Shenzhen enjoyed preferential VAT rate of 13%. The Company is required to remit the VAT it collects to the tax authority. A credit is available whereby VAT paid on purchases can be used to offset the VAT due on sales.