Note 7 - Income Taxes

3 Months Ended

Jun. 30, 2016

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 months ended June 30, 2016 and 2015.

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:

	Three Months Ended June 30,
	2016		2015
U.S. Statutory rate	$	751,891	$	1,393,403
Tax rate difference between China and U.S.		(214,826)		(398,115)
Permanent difference		35,659		(18,583)
Effective tax rate	$	572,724	$	976,705

The provisions for income taxes are summarized as follows:

	Three Months Ended June 30,
		2016		2015
Current	$	591,354	$	976,705
Deferred		(18,630)		-
Total	$	572,724	$	976,705