10. Income Tax

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax

At March 31, 2017 and December 31, 2016, based on the weight of available evidence, management determined that it was unlikely that the Company's deferred tax assets would be realized and have provided for a full valuation allowance associated with the net deferred tax assets.

The Company periodically analyzes its tax positions taken and expected to be taken and has determined that since inception there has been no need to record a liability for uncertain tax positions. The Company classifies income tax penalties and interest, if any, as part of selling, general and administrative expenses in the accompanying statements of operations. There was no accrued interest or penalties as of March 31, 2017 and December 31, 2016.

The Company is neither under examination by any taxing authority, nor has it been notified of any impending examination.

Under the Law of People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. As of March 31, 2017, the Company had net operating losses carry forward of $754,434 that begin expiring in 2018. The potential benefit of the Company’s net operating losses has not been recognized in these financial statements because it is more likely-than-not the Company will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant.

	March 31, 2017			December 31, 2016
Deferred Tax Assets and Liabilities:
Net operating loss carry forwards	$	754,434		$	608,739
Valuation allowance		(754,434	)		(608,739	)
Net deferred tax assets	$	–		$	–

A reconciliation between the income tax computed at the U.S. statutory rate and the Company’s provision for income tax in the PRC is as follows:

	March 31, 2017		December 31, 2016
Tax expense at statutory rate-US		34 %		34 %
Foreign income not recognized in the US		(34)%		(34)%
PRC enterprise income tax rate		25 %		25 %
Loss not subject to income tax		(25)%		(25)%
Effective income tax rates		–		–