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Income Taxes (Tables)
6 Months Ended
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%