15. Income taxes

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no withholding tax is imposed.

PRC

The Company’s consolidated subsidiaries in the PRC are governed by the income tax law of the PRC and file separate income tax returns. They are subject to PRC enterprise income tax at 25% on their taxable income.

Hong Kong

Subsidiaries reside in Hong Kong are subject to Hong Kong profits tax at a tax rate of 16.5% on their assessable profits.

The income tax benefit for the years ended December 31, 2014 and 2013 was $41 and $33, respectively. Income tax expense consists of the following:


	For the Years Ended December 31,
	2014			2013
Current tax expense
- PRC	$	—		$	—
- HK		(4	)		4
Deferred tax benefits
- PRC		(37	)		(37	)
- HK		—			—


Income tax benefit	$	(41	)	$	(33	)

The following table reconciles the Group’s effective tax for the years presented:


	For the Years Ended December 31,
	2014			2013
Loss before tax	$	(3,574	)	$	(3,968	)
Applicable tax rate		25	%		25	%
Computed expected tax benefit		(894	)		(992	)
Effect on HK entities subject to income tax 16.5%		(3	)		(2	)
Effect on other entities not subject to income tax		653			959
Effect on non-deductible cost		203			2


Income tax benefit	$	(41	)	$	(33	)

Non-deductible cost primarily represents cost and expense recognized without invoice received and entertainment expenses in excess of statutory limits for tax purpose.

The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred tax assets are as follows:


	For the Years Ended December 31,
	2014		2013
Deferred tax assets-current:
- Tax loss carried forwards of a subsidiary	$	74	$	37

Tiger Yaoyang incurred a pretax loss of approximately $147 and $148 for the years ended December 31, 2014 and 2013, which resulted in the increase of net operating loss carried forward. The net operating loss carry forwards will expire if unused in the years ending December 31, 2019 and 2018, respectively.

For the years ended December 31, 2014 and 2013, the Group did not have unrecognized tax benefits, and it does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months.