INCOME TAX

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

6. INCOME TAXES

The Company did not have income tax expense or income tax payable due to the use of net loss carryover from prior years.

As of March 31, 2017, the Company had net taxable operating loss carry forwards of approximately $1,908,861. The PRC income tax allows the enterprises to offset their future taxable income with taxable operating losses carried forward in a 5-year period. The management believes that the Company’s cumulative losses arising from recurring business in recent years constituted significant negative evidence that most of the deferred tax assets would not be realizable and this evidence outweighed the expectations that the Company would generate future taxable income. The valuation allowance of $477,215 was recorded.

Components of the Company’s net deferred tax assets are set forth below:

	March 31,			December 31,
	2017			2016
Deferred tax assets
Net operating loss carry-forward	$	477,215		$	440,140
Total of deferred tax assets	$	477,215		$	440,140
Less: valuation allowance	$	(477,215	)	$	(440,140	)
Net deferred tax assets	$	-		$	-