4. Income taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of provision for income taxes

(Loss)/profit before income taxes/(benefit):

	2014			2013			2012
	US$’000			US$’000			US$’000
The PRC and Hong Kong		(879	)		(157	)		13

The provision for income taxes consists of:

	2014		2013		2012
	US$’000		US$’000		US$’000
Current tax expenses:
The PRC and Hong Kong		8		47		117
Total current provision		8		47		117
Deferred tax expenses:
The PRC and Hong Kong		10		26		25
Total deferred provision		10		26		25

Reconciling items from income tax

	2014			2013			2012
	US$’000			US$’000			US$’000
Computed tax using respective companies’ statutory tax rates		(194	)		(49	)		31
Change in valuation allowances		93			124			166
Under-provision for income tax in prior years		-			-			-
Non-deductible expenses		119			(2	)		(55	)
Total provision for income tax at effective tax rate		18			73			142

Components of deferred tax assets

	2014			2013
	US$’000			US$’000
Tax losses		1131			1045
Temporary differences		4			6
Less: Valuation allowances		(908	)		(815	)
Net deferred tax assets		227			236

ZHEJIANG TIANLAN

Components of provision for income taxes

	2014			2013			2012
	RMB’000			RMB’000			RMB’000
Current PRC EIT:
Domestic		2,159			3,110			1,650
Income taxes		2,159			3,110			1,650
Deferred tax benefit:		(1,391	)		(447	)		784
Total deferred taxes		(1,391	)		(447	)		784

Reconciling items from income tax

	2014			2013			2012
	RMB’000			RMB’000			RMB’000
Income before income taxes		14,776			7,961			933
Computed tax using respective companies’ statutory tax rates		2,216			1,194			140
(Over)/under-provision for income tax in prior years		(2,418	)		(123	)		1,358
Temporary differences		1,575			(445	)		-
Tax effect on revenue not subject to tax		(695	)		(242	)		(56	)
Tax effect on expenses not deductible for tax purposes		90			2,279			992
Total provision for income tax at effective tax rate		768			2,663			2,434

Components of deferred tax assets

	2014		2013
	RMB’000		RMB’000
Tax losses		-		-
Allowance for doubtful debts		4,350		2,959
Net deferred tax assets		4,350		2,959

ZHEJIANG JIAHUAN

Components of provision for income taxes

					(Unaudited)
	2014		2013		2012
	RMB’000		RMB’000		RMB’000
Income taxes		484		19		-

Reconciling items from income tax

							(Unaudited)
	2014			2013			2012
	RMB’000			RMB’000			RMB’000
Income before income taxes		5,194			2,327			1,535
Computed tax using respective companies’ statutory tax rates		1,299			582			384
Tax effect on revenue not subject to tax		(537	)		(20,983	)		(20,291	)
Tax effect on expenses not deductible for tax purposes		-			20,455			19,907
Over-provision for income tax in prior years		(278	)		-			-
Others		-			(35	)		-
Total provision for income tax at effective tax rate		484			19			-