Note 7 - Income Taxes

9 Months Ended

Dec. 31, 2015

Notes

Note 7 - Income Taxes

NOTE 7 - INCOME TAXES

The Company 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 had no U.S. taxable income for the three and nine months ended December 31, 2015 and 2014.

The Company's Chinese subsidiaries are governed by the Income Tax Law of the PRC concerning the privately run and foreign invested enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.

The reconciliation of income tax expense at the U.S. statutory rate of 35% to the Company's effective tax rate is as follows:

	Nine Months Ended December 31,
	2015		2014
U.S. Statutory rate	$	3,713,832	$	2,691,716
Tax rate difference between China and U.S.		(1,061,095)		(769,062)
Permanent difference		(54,686)		(24,303)
Effective tax rate	$	2,598,051	$	1,898,351

The provisions for income taxes are summarized as follows:

	Nine Months ended December 31,
		2015		2014
Current	$	2,637,970	$	1,898,351
Deferred		(39,919)		-
Total	$	2,598,051	$	1,898,351