9. Income Tax

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax

NOTE 9 - INCOME TAX

At December 31, 2018 and 2017, based on the weight of available evidence, management determined that it was unlikely that the Company's deferred tax assets would be realized and have provided for a full valuation allowance associated with the net deferred tax assets.

The Company periodically analyzes its tax positions taken and expected to be taken and has determined that since inception there has been no need to record a liability for uncertain tax positions. The Company classifies income tax penalties and interest, if any, as part of selling, general and administrative expenses in the accompanying statements of operations. There was no accrued interest or penalties as of December 31, 2018 or 2017.

The Company is neither under examination by any taxing authority, nor has it been notified of any impending examination.

Under the Law of People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. The potential benefit of the Company’s net operating losses has not been recognized in these financial statements because it is more likely-than-not the Company will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant.

	For the Years Ended
	December 31,
	2018			2017
Current
USA	$	–		$	–
China		39,953			–
Deferred
USA
Deferred tax assets for NOL carryforwards		55,311			113,003
Valuation allowance		(55,311	)		(113,003	)
Net changes in deferred income tax under non-current portion		–			–
China
NOL carryforwards		(39,953	)		8,207
Valuation allowance		–			(8,207	)
Net changes in deferred income tax under non-current portion		(39,953	)		–
Total provision for income tax	$	–		$	–

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets at December 31, 2018 and 2017 are as follows:

	December 31, 2018			December 31, 2017
Deferred Tax Assets:
Net operating loss carry forwards		208,236			170,449
Valuation allowance		(208,236	)		(170,449	)
Net deferred tax assets		–			–

A reconciliation between the income tax computed at the U.S. statutory rate and the Company’s provision for income tax in the PRC is as follows:

	December 31, 2018			December 31, 2017
Tax expense at statutory rate-US		21%			34%
Foreign income not recognized in the US		(21%	)		(34%	)
PRC enterprise income tax rate		25%			25%
Loss not subject to income tax		(25%	)		(25%	)
Effective income tax rates		–			–

On December 22, 2017, the Tax Cuts and Jobs Act (the TCJA) was enacted, significantly altering U.S. corporate income tax law. The SEC issued Staff Accounting Bulletin 118, which allows companies to record reasonable estimates of enactment impacts where all of the underlying analysis and calculations are not yet complete. The provisional estimates must be finalized within a one-year measurement period. The Company reduced its net domestic deferred tax asset balance by $55,311 due to the reduction in corporate tax rate from 34% to 21%. These adjustments are fully offset by a change in the Company’s U.S. valuation allowance. The U.S. holding had operating loss carryforwards for federal income tax purposes of $681,591 approximately, which will expire in 2037. The statute of limitations for the 2016 tax year expires in 2020.