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Taxes | 12 Months Ended
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Dec. 31, 2017
Taxes [Abstract] |
Taxes | Note 6 – Taxes Income tax Income (loss) before taxes consists of the following:
|  | For the year ended |  |  | For the year ended |
|  | December 31, 2017 |  |  | December 31, 2016 |
PRC |  | $ | (780,032 | ) |  | $ | 219,749 |
Foreign |  |  | (488,334 | ) |  |  | - |
|  | $ | (1,268,366 | ) |  | $ | 219,749 |
Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed PRC Under the Income Tax Laws of the PRC, companies are subject to income tax at a rate of 25%. The following table reconciles China statutory rates to the Company’s effective tax rate:
|  | For the year ended |  |  | For the year ended |
|  | December 31, 2017 |  |  | December 31, 2016 |
China income tax rate |  |  | 25.0 | % |  |  | 25.0 | %
IPO costs |  |  | 7.7 | % |  |  | 0.0 | %
PRC – non-deductible expense |  |  | (1.7 | %) |  |  | 0.0 | %
Cayman – non-deductible expense |  |  | (9.6 | %) |  |  | 0.0 | %
Effective tax rate |  |  | 21.4 | % |  |  | 25.0 | %
Deferred tax assets – China According to Chinese tax regulations, net operating losses can be carried forward to offset operating income for five years. Significant components of deferred tax assets were as follows:
|  | December 31, 2017 |  |  | December 31, 2016 |
Net operating losses |  | $ | 302,3200 |  |  | $ | - |
Depreciation and amortization |  |  | - |  |  |  | 5,503 |
Deferred revenues |  |  | - |  |  |  | 3,320 |
Total |  | $ | 302,3200 |  |  | $ | 8,823 |
For the year ended December 31, 2017, the Company incurred an operating loss of $1,209,281 and recorded non-current deferred tax assets of $302,320. The Company recorded non-current deferred tax assets of $8,823 as of December 31, 2016. The Company believes that a valuation allowance is not deemed necessary for the deferred assets because there will be sufficient operating income generated in future years based on the fact that the Company generated profits for the year ended December 31, 2016. The management is expected to generate profits in the coming periods after the Company completed the IPO process. The Company recorded non-current deferred tax assets of $8,823 as of December 31, 2016, which were fully utilized during the year ended December 31, 2017. Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2017 and 2016, the Company did not have any significant unrecognized uncertain tax positions. sv Taxes payable consisted of the following:
|  | December 31, 2017 |  |  | December 31, 2016 |
VAT taxes payable |  | $ | 28,877 |  |  | $ | 48,468 |
Income taxes payable |  |  | - |  |  |  | 28,550 |
Other taxes payable |  |  | 6,770 |  |  |  | 5,138 |
Totals |  | $ | 35,647 |  |  | $ | 82,156 |

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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