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Income Taxes (Tables) | 6 Months Ended
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Jun. 30, 2023
Income Tax [Abstract] |
Schedule of Income (Loss) Before Income Taxes | The Company’s income (loss) before income taxes includes the following for the six months ended June 30.
|  | 2023 |  |  | 2022 |
|  | (Unaudited) |  |  | (Unaudited) |
Non-PRC operations |  | $ | (270,571 | ) |  | $ | (276,088 | )
PRC operations |  |  | 1,218,486 |  |  |  | 1,161,865 |
Total income before income taxes |  | $ | 947,915 |  |  | $ | 885,777 |
Schedule of Income Tax Expense | Income tax expense was comprised of the following for the six months ended June 30.
|  | 2023 |  |  | 2022 |
|  | (Unaudited) |  |  | (Unaudited) |
Current tax expense |  | $ | 36,221 |  |  | $ | 83,673 |
Deferred tax expense |  |  | 289,720 |  |  |  | 163,677 |
Total income tax expense |  | $ | 325,941 |  |  | $ | 247,350 |
Schedule of Deferred Tax Assets and Liabilities | The cumulative tax effect at the expected rate of 25% of significant items comprising the net deferred tax amount is at June 30, 2023 and December 31, 2022 as follows.
|  | June 30, 2023 |  |  | December 31, 2022 |
|  | (Unaudited) |  |  |  |
Deferred tax assets |  |  |  |  |  |
Net operating loss |  | $ | 7,124 |  |  | $ | 5,313 |
Deferred revenue |  |  | 116,000 |  |  |  | 205,605 |
Unbilled cost |  |  | 348,601 |  |  |  | 355,461 |
Unbilled interest expenses |  |  | 36,912 |  |  |  | 34,592 |
Software amortization |  |  | 254,353 |  |  |  | 267,039 |
Allowance for doubtful accounts |  |  | 38,673 |  |  |  | 8,308 |
Inventories obsolescence |  |  | 2,739 |  |  |  | 7,043 |
Unrealized losses on trading securities |  |  | 1,723 |  |  |  | 1,809 |
Accrued Bonus |  |  | 42,144 |  |  |  | 62,441 |
Other |  |  | 16,097 |  |  |  | 31,819 |
Total deferred tax assets |  |  | 864,366 |  |  |  | 979,430 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Unbilled revenue |  |  | (2,226,177 | ) |  |  | (2,149,169 | )
Unbilled interest income |  |  | (73,342 | ) |  |  | (69,149 | )
Deferred government subsidiary income |  |  | (40,773 | ) |  |  | (42,806 | )
Unrealized gain on short-term investment |  |  | (11,868 | ) |  |  | (2,796 | )
Other |  |  | (5,766 | ) |  |  | (4,462 | )
Total deferred tax liabilities |  |  | (2,357,926 | ) |  |  | (2,268,382 | )
Valuation allowance |  |  | (21,622 | ) |  |  | (11,469 | )
Net deferred tax liabilities |  | $ | (1,515,182 | ) |  | $ | (1,300,421 | )
Schedule of a Reconciliation of Income Tax Expense | Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates for the six months ended June 30.
|  | 2023 |  |  | 2022 |
|  | (Unaudited) |  |  | (Unaudited) |
PRC statutory tax rate |  |  | 25 | % |  |  | 25 | %
Effect of different tax rates in different jurisdictions |  |  | 7.1 | % |  |  | 7.8 | %
Permanent difference |  |  | 0.1 | % |  |  | - | %
Tax holiday effect |  |  | 2.2 | % |  |  | (4.9 | )%
Effective tax rate |  |  | 34.4 | % |  |  | 27.9 | %

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
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