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TAX RECEIVABLE
 12 Months Ended
Dec. 31, 2011
Tax Receivable [Abstract]  
Tax Receivable [Text Block]
6.TAX RECEIVABLE

 

Tax receivable consists of the following:

  December 31,  December 31, 
  2011  2010 
  US$  US$ 
Value added tax receivable  888,452   3,518,919 

 

Enterprises or individuals who sell commodities, engage in repair and maintenance or import and export goods in the PRC are subject to a VAT in accordance with Chinese laws. The standard VAT is 17% of the gross sales price. A credit is available whereby VAT paid on the purchases of unassembled medical components of the Company’s product used in contract and production can be used to offset the VAT due on sales of the product.

 

The tax receivable as of December 31, 2011 and 2010 represents VAT credit on the purchased products. These amounts can be used to offset the VAT due on sales of the finished product.