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Taxes Payable | 9 Months Ended
--- | ---
Mar. 31, 2020
Income Tax Disclosure [Abstract] |
TAXES PAYABLE | NOTE 11 – TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the Enterprise Income Tax ("EIT") law of the PRC replaced the tax laws for Domestic Enterprises ("DEs") and Foreign Invested Enterprises ("FIEs"). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two-year tax exemption and three-year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, because of the expiration of its tax exemption on March 31, 2007. Accordingly, it made provision for income taxes for the six-month period ended March 31, 2020 and 2019 of $0 and $1,007,503, respectively. Gufeng is subject to a 25% EIT rate and thus it made provision for income taxes of $0 and $2,768,465 for the Nine Months ended March 31, 2020 and 2019, respectively. Value-Added Tax All of the Company's fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, "Exemption of VAT for Organic Fertilizer Products", which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through March 31, 2015. On August 10, 2015 and August 28, 2015, the SAT released Notice #90. "Reinstatement of VAT for Fertilizer Products", and Notice #97, "Supplementary Reinstatement of VAT for Fertilizer Products", which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016. On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, "Notice on Policy of Reduced Value Added Tax Rate," under which, effective July 1, 2017, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 11% of the gross sales price. The tax rate was reduced 2% from 13%. On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, "Notice on Adjustment of VAT Tax Rate," under which, effective May 1, 2018, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 10% of the gross sales price. The tax rate was reduced 1% from 11%. On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, "Announcement on Policies Concerning Deepening the Reform of Value Added Tax," under which, effective April 1, 2019, all of the Company's fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 9% of the gross sales price. The tax rate was reduced 1% from 10%. Income Taxes and Related Payables
|  | March 31, |  |  | June 30, |
|  | 2020 |  |  | 2019 |
VAT provision |  | $ | (279,835 | ) |  | $ | (424,535 | )
Income tax payable |  |  | 700,574 |  |  |  | 1,550,830 |
Other levies |  |  | 1,196,711 |  |  |  | 1,220,859 |
Total |  | $ | 1,617,450 |  |  | $ | 2,347,154 |
The provision for income taxes consists of the following
|  | March 31, |  |  | June 30, |
|  | 2020 |  |  | 2019 |
Current tax - foreign |  | $ | 1,341,513 |  |  | $ | 1,654,416 |
Deferred tax |  |  | - |  |  |  | - |
Total |  | $ | 1,341,513 |  |  | $ | 1,654,416 |
Tax Rate Reconciliation Our effective tax rates were approximately -1.6% and 24.2% for the Nine Months ended March 31, 2020 and 2019, respectively. Substantially all of the Company's income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 21% to income before income taxes for the three months Ended March 31, 2020 and 2019 for the following reasons: March 31, 2020
|  | China 15% - 25% |  |  |  |  |  | United States 21% |  |  |  |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | (82,037,196 | ) |  |  |  |  |  |  | (1,240,280 | ) |  |  |  |  |  | $ | (83,277,476 | ) |  |  |  |
Expected income tax expense (benefit) |  |  | (20,509,299 | ) |  |  | 25.0 | % |  |  | (260,459 | ) |  |  | 21.0 | % |  |  | (20,769,758 | ) |  |  |  |
High-tech income benefits on Jinong |  |  | 2,561,450 |  |  |  | (3.1 | )% |  |  | - |  |  |  | - |  |  |  | 2,561,450 |  |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 19,289,362 |  |  |  | (23.5 | )% |  |  | - |  |  |  | - |  |  |  | 19,289,362 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 260,459 |  |  |  | (21.0 | )% |  |  | 260,459 |  |  |  |  |
Actual tax expense |  | $ | 1,341,513 |  |  |  | (1.6 | )% |  | $ | - |  |  |  | - | % |  | $ | 1,341,513 |  |  |  | (1.6 | )%
March 31, 2019 |  |  |  |  |  |  |  |  |
|  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 23,320,275 |  |  |  | - |  |  |  | (1,363,166 | ) |  |  | - |  |  | $ | 21,957,109 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 5,830,069 |  |  |  | 25.0 | % |  |  | (286,265 | ) |  |  | 21.0 | % |  |  | 5,543,804 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (671,669 | ) |  |  | (2.9 | )% |  |  |  |  |  |  | - |  |  |  | (671,669 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 163,271 |  |  |  | 0.7 | % |  |  |  |  |  |  | - |  |  |  | 163,271 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  | - |  |  |  | 286,265 |  |  |  | (21.0 | )% |  |  | 286,265 |  |  |  |  |
Actual tax expense |  | $ | 5,321,671 |  |  |  | 22.8 | % |  | $ | - |  |  |  | - | % |  | $ | 5,321,671 |  |  |  | 24.2 | %

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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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