Income Tax Expense

6 Months Ended

Jun. 30, 2022

Income Tax Expense [Abstract]

INCOME TAX EXPENSE

NOTE 7. INCOME TAX EXPENSE

The Company uses the asset-liability method of accounting for income taxes prescribed by ASC 740 Income Taxes. The Company and its subsidiaries each file their taxes individually.

United States

JRSS is subject to the United States of America tax at a tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the periods presented, and its earnings are planned to be reinvested indefinitely into the operations of the Company in the PRC.

The following table shows the components of the allowance for US income tax recorded for six months ended June 30, 2022:

	Amounts
Loss before income tax	$	792,193
Tax rate at 21%		166,361
Disallowed tax losses		(166,361	)
Income tax expense	$	-

BVI

JHCL was incorporated in the BVI and, under the current laws of the BVI, it is not subject to income tax.

Hong Kong

Runteng was incorporated in Hong Kong and is subject to Hong Kong profits tax. Runteng is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%.

The following table shows the components of the allowance for Hong Kong income tax recorded for six months ended June 30, 2022:

		Amounts
Loss before income tax	$	-
Tax rate at 16.5%		-
Disallowed tax losses		-
Income tax expense	$	-

PRC

Corporate Income Tax (CIT) is determined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC. Income tax is payable by enterprises at a rate of 25% of their taxable income.

The following table shows the components of the allowance for PRC income tax recorded for six months ended June 30, 2022:

		Amounts
Income tax expense	$	-
Income tax: 2022 deferred		-
Tax expense from continuing operation	$	-

Reconciliation:

	Amounts
Income tax at statutory rate	$	-
Tax expense from continuing operation	$	-