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INCOME TAX | 6 Months Ended
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Dec. 31, 2019
INCOME TAX |
INCOME TAX | NOTE 22. INCOME TAX The Company is not subject to any income taxes in the United States or the Cayman Islands and had minimal operations in jurisdictions other than the PRC. BHD and Nanjing Recon are subject to PRC’s income taxes as PRC domestic companies. The Company follows Implementing Rules for the Enterprise Income Tax Law (“Implementing Rules”), which took effect on January 1, 2008 and unified the income tax rate for domestic-invested and foreign-invested enterprises at 25%. Nanjing Recon was approved as a government-certified high-technology company and is subject to a reduced income tax rate of 15% through November 30, 2019. Nanjing Recon reapplied for high-technology enterprise review approval and is still under the government's verification procedures. As approved by the domestic tax authority in the PRC, BHD was recognized as a government-certified high-technology company on November 25, 2009 and is subject to a reduced income tax rate of 15% through November 25, 2018. BHD reapplied for a high-technology company certificate, and the new certificate was approved as October 31, 2018 and will expire on October 31, 2021. Income (loss) before provision for income taxes consisted of:
|  | June 30, |  | December 31, |  | December 31,
|  | 2019 |  | 2019 |  | 2019
|  | RMB |  | RMB |  | U.S. Dollars
Outside China areas |  | ¥ | (28,447,953) |  | ¥ | (7,624,668) |  | $ | (1,094,242)
China |  |  | 3,064,024 |  |  | 904,020 |  |  | 129,739
Total |  | ¥ | (25,383,929) |  | ¥ | (6,720,648) |  | $ | (964,503)
Deferred tax asset, net is composed of the following:
|  | June 30, |  | December 31, |  | December 31,
|  | 2019 |  | 2019 |  | 2019
|  | RMB |  | RMB |  | U.S. Dollars
Allowance for doubtful receivables |  | ¥ | 832,515 |  | ¥ | 841,096 |  | $ | 120,708
Impairment loss from investment in unconsolidated entity |  |  | 605,660 |  |  | 605,660 |  |  | 86,920
Net operating loss carryforwards |  |  | 7,456,198 |  |  | 8,202,780 |  |  | 1,177,208
Less: Valuation allowance |  |  | (8,894,373) |  |  | (9,649,536) |  |  | (1,384,836)
Deferred income tax assets, net |  | ¥ | — |  | ¥ | — |  | $ | —
The Company’s income tax expense is composed of the following:
|  | For the six months ended December 31,
|  | 2018 |  | 2019 |  | 2019
|  | RMB |  | RMB |  | U.S. Dollars
Current income tax provision |  | ¥ | 2,002 |  | ¥ | 316,799 |  | $ | 45,465
Income tax expenses |  | ¥ | 2,002 |  | ¥ | 316,799 |  | $ | 45,465

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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