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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2016
INCOME TAXES [Abstract] |
Schedule of Income before Income Taxes | The components of income before income taxes are as follows:
|  | Year Ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
|  | RMB |  | RMB |  | RMB |
PRC |  |  | 146,570 |  |  | 200,789 |  |  | 272,745 |
Hong Kong |  |  | (1,964) |  |  | (1,908) |  |  | (573) |
Cayman Islands |  |  | 22,039 |  |  | (16,154) |  |  | (11,542) |
Total income before income taxes |  |  | 166,645 |  |  | 182,727 |  |  | 260,630 |
Schedule of Income Tax Expense | Income tax expense consists of the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
|  | RMB |  | RMB |  | RMB |
Current income tax expense |  |  | 18,985 |  |  | 25,581 |  |  | 37,671 |
Deferred income tax benefit |  |  | (4,190) |  |  | (21,614) |  |  | (18,895) |
Total |  |  | 14,795 |  |  | 3,967 |  |  | 18,776 |
Schedule of Income Tax Rate Reconciliation | The actual income tax expense reported in the consolidated statements of comprehensive income for each of the years ended December 31, 2014, 2015 and 2016 differs from the amount computed by applying the PRC statutory income tax rate to income before income taxes due to the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
PRC statutory income tax rate |  |  | 25.0 | % |  | 25.0 | % |  | 25.0 | %
Increase (decrease) in effective income tax rate resulting from: |  |  |  |  |  |  |  |  |  |
Cayman and HK entities not subject to income taxes |  |  | (3.0) | % |  | 2.5 | % |  | 1.2 | %
Research and development bonus deduction |  |  | (2.7) | % |  | (3.3) | % |  | (2.7) | %
Non-deductible selling, general and administrative expenses |  |  |  |  |  |  |  |  |  |
Share based compensation |  |  | 3.8 | % |  | 4.5 | % |  | 6.5 | %
Other non-deductible selling, general and administrative expenses |  |  | 0.5 | % |  | 0.6 | % |  | 0.1 | %
ANTE preferential tax rate |  |  | (1.0) | % |  | 0.1 | % |  | (0.7) | %
Tarena Hangzhou preferential tax rate |  |  | (0.1) | % |  | 0.7 | % |  | 0.5 | %
Change in valuation allowance |  |  | 6.4 | % |  | 3.1 | % |  | 2.5 | %
Tarena Hangzhou and Hanru Hangzhou tax holiday |  |  | (20.0) | % |  | (31.1) | % |  | (25.2) | %
Others |  |  | 0.0 | % |  | 0.1 | % |  | 0.0 | %
Actual income tax expense |  |  | 8.9 | % |  | 2.2 | % |  | 7.2 | %
Schedule of Deferred Income Tax Assets | The principal components of deferred income tax assets are as follows:
|  | December 31, |
|  | 2015 |  | 2016 |
|  | RMB |  | RMB |
Deferred income tax assets: |  |  |  |  |  |  |
Accounts receivable |  |  | 34,616 |  |  | 47,126 |
Tax loss carry forwards |  |  | 7,065 |  |  | 9,984 |
Advertising expense |  |  | 13,666 |  |  | 23,401 |
Accrued expenses and other current liabilities |  |  | - |  |  | 123 |
Total deferred income tax assets |  |  | 55,347 |  |  | 80,634 |
Valuation allowance |  |  | (20,115) |  |  | (26,507) |
Deferred income tax assets, net |  |  | 35,232 |  |  | 54,127 |
Summary of Valuation Allowance | The movements of the valuation allowance are as follows:
|  | Year Ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
|  | RMB |  | RMB |  | RMB |
Balance at the beginning of the year |  |  | 3,647 |  |  | 14,362 |  |  | 20,115 |
Additions of valuation allowance |  |  | 11,198 |  |  | 9,069 |  |  | 13,076 |
Reduction of valuation allowance |  |  | (483) |  |  | (3,316) |  |  | (6,684) |
Balance at the end of the year |  |  | 14,362 |  |  | 20,115 |  |  | 26,507 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits for the years ended December 31, 2014, 2015 and 2016 is as follows:
|  | Year Ended December 31, |
|  | 2014 |  | 2015 |  | 2016 |
|  | RMB |  | RMB |  | RMB |
Balance at beginning of year |  |  | 18,764 |  |  | 36,921 |  |  | 53,404 |
Increase related to current year tax positions |  |  | 35,436 |  |  | 51,050 |  |  | 66,122 |
Settlement |  |  | (17,279) |  |  | (34,567) |  |  | (49,704) |
Balance at end of year |  |  | 36,921 |  |  | 53,404 |  |  | 69,822 |

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