v2.4.1.9

INCOME TAXES | 3 Months Ended
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Mar. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 11. INCOME TAXES United States Deyu Agriculture Corp. is incorporated in the State of Nevada in the United States of America and is subject to the U.S. federal and state taxation. No provision for income taxes have been made as the Company has no taxable income in the U.S. The applicable income tax rate for the Company for the three months ended March 31, 2015 and 2014 was 34%. 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 City Zone, a wholly-owned subsidiary of the Company, is incorporated in the BVI and, under the current laws of the BVI, is not subject to income taxes. Hong Kong Most Smart, a wholly-owned subsidiary of the Company, is incorporated in Hong Kong. Most Smart is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provision for income taxes have been made as Most Smart has no taxable income in Hong Kong. People’s Republic of China Under the Enterprise Income Tax (“EIT”) Law of the PRC, the standard EIT rate is 25%. The PRC subsidiaries of the Company are subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. According to the Tax Pronouncement [2008] No. 149 issued by the State Administration of Tax of the PRC, the preliminary processing industry of agricultural products is entitled to EIT exemption starting January 1, 2008. Three of the Company’s wholly-owned subsidiaries located in the Shanxi Province, China, including JinzhongDeyu, JinzhongYongcheng and JinzhongYuliang, are subject to the EIT exemption. All other subsidiaries are subject to the 25% EIT rate. The provision for income taxes on income consisted of the following for the three months ended March 31, 2015 and 2014:
|  | For The Three Months Ended |
|  | March 31, |
|  | 2015 |  | 2014 |
Current income tax expense (benefit) |  |  |  |  |  |  |
U.S. |  | $ | - |  | $ | - |
PRC |  |  | 56,448 |  |  | 83,249 |
Total current expense (benefit) |  | $ | 56,448 |  | $ | 83,249 |
Deferred income tax expense (benefit) |  |  |  |  |  |  |
U.S. |  | $ | - |  | $ | - |
PRC |  |  | - |  |  | - |
Income tax expense (benefit) |  | $ | 56,448 |  | $ | 83,249 |
The following is a reconciliation of the statutory tax rate to the effective tax rate for the three months ended March 31, 2015 and 2014:
|  | For The Three Months Ended |
|  | March 31, |
|  | 2015 |  |  | 2014 |
Expected U.S. income tax expense |  |  | 34.0 | % |  |  | 34.0 | %
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |
Tax-exempt income |  |  | -32.9 | % |  |  | -33.0 | %
Foreign tax differential |  |  | 0.2 | % |  |  | 0.0 | %
Change in valuation allowance |  |  | 4.6 | % |  |  | -0.2 | %
Intercompany elimination |  |  | 0.0 | % |  |  | 0.0 | %
Other |  |  | -3.5 | % |  |  | 0.1 | %
Income tax expense |  |  | 2.4 | % |  |  | 0.9 | %
Significant components of the Company’s net deferred tax assets as of March 31, 2015 and December 31, 2014 are presented in the following table:
|  | March 31, |  | December 31, |
|  | 2015 |  | 2014 |
Deferred tax assets |  |  |  |  |  |  |
Net operating loss carryforwards (NOL) |  | $ | 5,741,096 |  | $ | 5,696,456 |
Share-based compensation |  |  | 407,099 |  |  | 407,099 |
Others |  |  | 438,203 |  |  | 438,122 |
Total |  |  | 6,586,398 |  |  | 6,541,677 |
Less: Valuation allowance |  |  | (6,586,398) |  |  | (6,541,677) |
Total deferred tax assets, net |  | $ | - |  | $ | - |
As of March 31, 2015, the Company accrued a 100% valuation allowance on its deferred tax assets based on the assessment on the probability of future reversion.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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