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INCOME TAXES (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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