INCOME TAXES

6 Months Ended

Jun. 30, 2021

INCOME TAXES

Note 7. INCOME TAXES

Note 7. INCOME TAXES

United States

EOS, Inc. is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the period. As of June 30, 2021, the Company had net operating loss carry forwards of $92,380 that may be available to reduce future years’ taxable income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements as their realization is determined not likely to occur and, accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100% valuation allowance has offset deferred tax asset resulting from the net operating losses.

British Virgin Islands

EOS International Inc. is incorporated in British Virgin Islands and are not required to pay income tax.

Taiwan

The subsidiary of EOS Inc. and Emperor Star are incorporated in Taiwan. According to the amendments to the “Taiwan Income Tax Act” enacted by the office of the President of Taiwan on February 7, 2018, an increase in the statutory income tax rate from 17% to 20% and decrease in the undistributed earning tax from 10% to 5% are effective from January 1, 2018.

People’s Republic of China (“PRC”)

Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiary of the Company is subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. No provision for income taxes have been made as Maosong had no taxable income as of and for the six months ended June 30, 2021.

Provision for income tax consists of the following:

	For the Six Months Ended June 30,
	2021			2020
Current income tax
U.S.	$	-		$	-
Taiwan		-			-
PRC		-			-
Sub total		-			-
Deferred income tax
U.S.
Deferred tax assets for NOL carryforwards		(19,340	)		(28,019	)
Valuation allowance		19,340			28,019
Net changes in deferred income tax (benefit)		-			-
Total income tax provision	$	-		$	-

The following is a reconciliation of the statutory tax rate to the effective tax rate:

	For the Six Months Ended
U.S. statutory income tax rate		21	%	21	%
Taiwan unified income tax rate		20	%	20	%
PRC standard EIT rate		25	%	25	%
Changes in valuation allowance		(46	)%	(46	)%
Other		(20	)%	(20	)%
Effective combined income tax rate		0	%	0	%

Significant components of the Company’s deferred taxes as of June 30, 2021 and December 31, 2020 were as follows:

	June 30,			December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	197,124		$	177,784
Less: Valuation allowance		(197,124	)		(177,784	)
Deferred tax assets, net	$	-		$	-