Note 6 - Income Taxes

9 Months Ended

Sep. 30, 2011

Income Tax Disclosure [Text Block]

NOTE－6                   INCOME TAXES

The Company generated an operating loss for the nine months ended September 30, 2011 and 2010 and did not record income tax expense. The Company has operations in various countries and is subject to tax in the jurisdictions in which they operate, as follows:

United States of America

UOLI is registered in the State of Nevada and is subject to United States of America tax law. No provision for income taxes have been made as UOLI has generated no taxable income for the periods presented.

British Virgin Island

Under the current BVI law, the Company is not subject to tax on income.

Hong Kong

The Company’s subsidiary operating in Hong Kong is subject to Hong Kong Profits Tax at the statutory rate of 16.5% on its assessable income for the nine months ended September 30, 2011 and 2010, respectively. For the nine months ended September 30, 2011, the Company incurred an operating loss of $312,497 for income tax purposes, with approximately $2,297,159 of cumulative net operating loss carryforwards for Hong Kong tax purpose at no expiration.

The following table sets forth the significant components of the aggregate net deferred tax assets of the Company as of September 30, 2011 and December 31, 2010:

	September 30, 2011			December 31, 2010
Deferred tax assets:
Net operating loss carryforwards	$	378,707		$	327,985
Less: valuation allowance		(378,707	)		(327,985	)
Net deferred tax assets	$	-		$	-

As of September 30, 2011, the Company has provided for a full valuation allowance against the deferred tax assets of $378,707 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. For the nine months ended September 30, 2011, the valuation allowance is increased by $50,722, primarily relating to net operating loss carryforwards from the foreign tax regime.