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Note 14 - Taxation
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
14.
 Taxation
 
As of
March 31, 2021
and
December 31, 2020,
taxes payable consists of:
 
   
March 31,
2021
  
December 31,
2020
    US$('000)   US$('000)
    (Unaudited)    
         
Turnover tax and surcharge payable    
1,321
      
1,353
  
Enterprise income tax payable    
2,064
      
2,077
  
Total taxes payable    
3,385
      
3,430
  
 
For the
three
months ended
March 31, 2021
and
2020,
the Company's income tax benefit/(expense) consisted of:
 
    Three Months Ended March 31,
    2021   2020
    US$('000)   US$('000)
    (Unaudited)   (Unaudited)
         
Current    
-
      
(83
 )
Deferred    
18
      
5
  
Income tax benefit/(expense)    
18
      
(78
 )
 
The Company's deferred tax assets as of
March 31, 2021
and
December 31, 2020
were as follows:
 
   
March 31,
2021
  
December 31,
2020
    US$('000)   US$('000)
    (Unaudited)    
         
Tax effect of net operating losses carried forward    
10,414
      
10,123
  
Bad debts provision    
724
      
728
  
Valuation allowance    
(10,514
 )    
(10,245
 )
Deferred tax assets, net    
624
      
606
  
 
The U.S. holding company has incurred aggregate net operating losses (NOLs) of approximately
US$23.5
million and
US$23.3
million at
March 31, 2021
and
December 31, 2020,
respectively. The NOLs carryforwards as of
December 31, 2017
gradually expire over time, the last of which expires in
2037.
NOLs incurred after
December 31, 2017
will
no
longer be available to carry back but can be carried forward indefinitely. Furthermore, the Act imposes an annual limit of
80%
on the amount of taxable income that can be offset by NOLs arising in tax years ending after
December 31, 2017.
The Company maintains a full valuation allowance against its net U.S. deferred tax assets, since due to uncertainties surrounding future utilization, the Company estimates there will
not
be sufficient future earnings to utilize its U.S. deferred tax assets.
 
The NOLs carried forward incurred by the Company's PRC subsidiaries and VIEs were approximately
US$23.5
million and
US$22.5
million as of
March 31, 2021
and
December 31, 2020,
respectively. The losses carryforwards gradually expire over time, the last of which will expire in
2031
due to the fact that certain subsidiary enjoys the High and New Technology Enterprise's privileged NOLs carryforward policy. The related deferred tax assets were calculated based on the respective NOLs incurred by each of the PRC subsidiaries and VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized.
 
The Company recorded approximately
US$10.5
million and
US$10.2
million valuation allowance as of
March 31, 2021
and
December 31, 2020,
respectively, because it is considered more likely than
not
that a portion of the deferred tax assets will
not
be realized through sufficient future earnings of the entities to which the operating losses related.
 
For the
three
months ended
March 31, 2021
and
2020,
the Company recorded approximately
US$0.31
million and
US$0.55
million deferred tax valuation allowance, respectively.