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Income Taxes | 3 Months Ended | 6 Months Ended
--- | --- | ---
Mar. 31, 2020 | Dec. 31, 2019
Income Tax Disclosure [Abstract] |  |
Income Taxes | 12. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following:
|  | For the three months ended |
|  | March 31, 2020 |  |  | March 31, 2019 |
|  | (Unaudited) |  |  | (Unaudited) |
Tax jurisdictions from: |  |  |  |  |  |  |  |
- Local |  | $ | (142,419 | ) |  | $ | (14,724 | )
- Foreign - Labuan |  |  | (55,587 | ) |  |  | 59,674 |
- Foreign - Hong Kong |  |  | (33,744 | ) |  |  | 19,300 |
Income (Loss) before income tax |  | $ | (231,750 | ) |  | $ | 64,250 |
The benefit for income taxes consisted of the following:
|  | For the three months ended |
|  | March 31, 2020 |  |  | March 31, 2019 |
|  | (Unaudited) |  |  | (Unaudited) |
Current: |  |  |  |  |  |  |  |
- Local |  | $ | - |  |  | $ | - |
- Foreign |  |  | - |  |  |  | (6,965 | )
Deferred: |  |  |  |  |  |  |  |
- Local |  |  | - |  |  |  | - |
- Foreign |  |  | - |  |  |  | - |
Benefit for income taxes |  | $ | - |  |  | $ | (6,965 | )
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America Agape ATP Corporation was incorporated in the State of Nevada and is subject to the tax laws of the United States of America. As of March 31, 2020, the operations in the United States of America incurred approximately $349,000 of cumulative net operating losses which can be carried forward to offset future taxable income. Approximately $10,000 and $24,000 of the net operating loss carry forwards will expire in 2027and 2028, respectively, if unutilized. The remaining balance can be carried forward indefinitely. The deferred tax valuation allowance as of March 31, 2020 and December 31, 2019 were approximately $73,000 and $43,000, respectively. Labuan Under the current laws of the Labuan, Agape ATP Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit. Due to Agape ATP Corporation is a holding company, it did not generate any income nor incurred any income tax. In addition, its related expenses incurred cannot be carried forward to offset any future operation income. Hong Kong Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction. The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below:
|  | For the three months ended |
|  | March 31, 2020 |  |  | March 31, 2019 |
|  | (Unaudited) |  |  | (Unaudited) |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
Valuation allowance |  |  | (21.0 | )% |  |  | (21.0 | )%
Permanent difference (1) |  |  | 0.0 | % |  |  | (10.8 | )%
Effective tax rate |  |  | 0.0 | % |  |  | (10.8 | )%
(1) This was related to disallowed expenditure incurred in the ordinary course of business. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:
|  | As of March 31, 2020 |  |  | As of December 31, 2019 |
|  | (Unaudited) |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carry forwards in U.S. |  | $ | 73,318 |  |  | $ | 43,410 |
Less: valuation allowance |  |  | (73,318 | ) |  |  | (43,410 | )
Deferred tax assets |  | $ | - |  |  | $ | - |
| 11. INCOME TAXES The United States and foreign components of income (loss) before income taxes were comprised of the following:
|  | For the six months ended |  |  | For the years ended |
|  | December 31, 2019 |  |  | December 31, 2018 |  |  | June 30, 2019 |  |  | June 30, 2018 |
|  |  |  |  | (Unaudited) |  |  |  |  |  |  |
Tax jurisdictions from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Local |  | $ | (279,476 | ) |  | $ | (33,977 | ) |  | $ | (76,309 | ) |  | $ | (261,918 | )
- Foreign - Labuan |  |  | (4,174 | ) |  |  | (45,576 | ) |  |  | (2,777 | ) |  |  | 134,806 |
- Foreign – Hong Kong |  |  | (55,281 | ) |  |  | (55,928 | ) |  |  | (440,556 | ) |  |  | 2,172 |
Loss before income tax |  | $ | (338,931 | ) |  | $ | (135,481 | ) |  | $ | (519,642 | ) |  | $ | (124,940 | )
The provision for income taxes consisted of the following:
|  | For the six months ended |  |  | For the years ended |
|  | December 31, 2019 |  |  | December 31, 2018 |  |  | June 30, 2019 |  |  | June 30, 2018 |
|  |  |  |  | (Unaudited) |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
- Local |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
- Foreign |  |  | - |  |  |  | 6,965 |  |  |  | - |  |  |  | 5,334 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Local |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
- Foreign |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Income tax expense |  | $ | - |  |  | $ | 6.965 |  |  | $ | - |  |  | $ | 5,334 |
The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America Agape ATP Corporation is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2019, June 30, 2019 and December 31, 2018, the operations in the United States of America incurred $717,901, $438,426, and $395,095 (unaudited), respectively, of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carry forwards begin to expire in 2037 and ending in 2039, if unutilized. The tax valuation allowance as of December 31, 2019, June 30, 2019 and December 31, 2018 are $150,759, $92,069 and $82,970 (unaudited), respectively. Labuan Under the current laws of the Labuan, Agape ATP Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit. Due to Agape ATP Corporation is a holding company, it did not generate any income nor incurred any income tax. In addition, its related expenses incurred cannot be carried forward to offset any future operation income. Hong Kong Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction. The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below:
|  | For the six months ended |  |  | For the years ended |
|  | December 31, 2019 |  |  | December 31, 2018 |  |  | June 30, 2019 |  |  | June 30, 2018 |
|  |  |  |  | (Unaudited) |  |  |  |  |  |  |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Valuation allowance |  |  | (21.0 | )% |  |  | (21.0 | )% |  |  | (21.0 | )% |  |  | (21.0 | )%
Permanent difference (1) |  |  | 0.0 | % |  |  | (5.1 | )% |  |  | 0.0 | % |  |  | (4.3 | )%
Effective tax rate |  |  | 0.0 | % |  |  | (5.1 | )% |  |  | 0.0 | % |  |  | (4.3 | )%
(1) This was related to disallowed expenditure incurred in the ordinary course of business. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:
|  | As of December 31, 2019 |  |  | As of June 30, 2019 |  |  | As of December 31, 2018 |
|  |  |  |  |  |  |  | (Unaudited) |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating loss carry forwards in U.S. |  | $ | 150,759 |  |  | $ | 92,069 |  |  | $ | 82,970 |
Less: valuation allowance |  |  | (150,759 | ) |  |  | (92,069 | ) |  |  | (82,970 | )
Deferred tax asset |  | $ | - |  |  | $ | - |  |  | $ | - |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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