XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Income Taxes | 3 Months Ended
--- | ---
Mar. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 15 - INCOME TAXES The (loss) income before income taxes of the Company For the three months ended March 31, 2017 and 2016 were comprised of the following:
|  | For the three months ended March 31, |
|  | 2017 |  |  | 2016 |
Tax jurisdictions from: |  |  |  |  |  |  |  |
– Local |  | $ | (135,657 | ) |  | $ | (286,206 | )
– Foreign, representing: |  |  |  |  |  |  |  |
BVI |  |  | (65,937 | ) |  |  | (102 | )
Belize |  |  | 150,168 |  |  |  | 67,271 |
Anguilla |  |  | (427 | ) |  |  | 1,669 |
Malaysia |  |  | (43,797 | ) |  |  | (2,223 | )
Hong Kong |  |  | 38,370 |  |  |  | 1,400 |
The PRC |  |  | (41,670 | ) |  |  | (9,404 | )
Loss before income taxes |  | $ | (98,950 | ) |  | $ | (227,595 | )
Provision for income taxes consisted of the following:
|  | For the three months ended March 31, |
|  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |
– Local |  | $ | - |  |  | $ | - |
– Foreign, representing: |  |  |  |  |  |  |  |
BVI |  |  | - |  |  |  | - |
Belize |  |  | - |  |  |  | - |
Anguilla |  |  | - |  |  |  | - |
Hong Kong |  |  | 10,543 |  |  |  | 5,589 |
The PRC |  |  | - |  |  |  | - |
Malaysia |  |  | 2,303 |  |  |  | - |
Deferred: |  |  |  |  |  |  |  |
– Local |  |  | - |  |  |  | - |
– Foreign |  |  | - |  |  |  | - |
|  | $ | 12,846 |  |  | $ | 5,589 |
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. During the periods presented, the Company has a number of subsidiaries that operates in different countries and is subject to tax in the jurisdictions in which its subsidiaries operate, as follows: United States of America GRNQ is registered in the State of Nevada and is subject to United States of America tax law. As of March 31, 2017, the operations in the United States of America incurred $1,315,372 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2037, if unutilized. The Company has provided for a full valuation allowance of approximately $460,380 against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes it is not likely that these assets will not be realized in the future. British Virgin Islands Under the current BVI law, the Company’s subsidiaries are not subject to tax on income. No provision for income tax is required due to operating loss incurred. Belize Under the current Laws of Belize, the Company’s subsidiaries are registered as a Belizean International Business Corporation which is subject to 0% income tax rate. Anguilla Under the current laws of the Anguilla, GPVC and GPVC (Qianhai) are registered as an international business company which is governed by the International Business Companies Act of Anguilla and there is no income tax charged in Anguilla. For the three months ended March 31, 2017 and 2016, the GPVC and GPVC (Qianhai) incurred aggregated net operating loss of $427 and $1,669, respectively. Hong Kong All of the Company’s subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax, which is charged at the statutory income tax rate of 16.5% on its assessable income for its tax year. A reconciliation of income (loss) before income taxes to the effective tax rate as follows:
|  | For the three months ended March 31, |
|  | 2017 |  |  | 2016 |
Subsidiary with operating income before income tax |  | $ | 63,820 |  |  | $ | 50,253 |
Subsidiaries with loss before income tax |  |  | (25,450 | ) |  |  | (21,148 | )
Net income before income tax |  |  | 38,370 |  |  |  | 29,105 |
Subsidiary with operating income before income tax |  | $ | 63,820 |  |  | $ | 50,253 |
Statutory income tax rate |  |  | 16.5 | % |  |  | 16.5 | %
Income tax at Hong Kong statutory income tax rate |  |  | 10,530 |  |  |  | 8,291 |
Income tax paid |  |  | 13 |  |  |  | - |
Tax effect of tax loss brought forward |  |  | - |  |  |  | - |
Tax effect of tax reduction |  |  | - |  |  |  | (2,702 | )
Income tax expense |  | $ | 10,543 |  |  | $ | 5,589 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. There was no significant temporary difference as of March 31, 2017, therefore no deferred tax assets or liabilities have been recognized. The PRC GMC(SZ) and SZ Falcon are operating in the PRC subject to the Corporate Income Tax governed by the Income Tax Law of the People’s Republic of China with a unified statutory income tax rate of 25%. For the three months ended March 31, 2017 and 2016, the GMC(SZ) and SZ Falcon incurred aggregated operating losses of $41,670 and $9,404, respectively, which can be carried forward up to five years to offset its taxable income. As of March 31, 2017, the operations in the PRC incurred $282,506 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2022, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $70,626 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. Malaysia GRSB, GCVSB and GWSB are subject to the Malaysia Corporate Tax Laws at a progressive income tax rate starting from 20% on the assessable income for its tax year. For the three months ended March 31, 2017 and 2016, GRSB and GCVSB incurred an aggregated operating loss of $43,797 and $2,223, respectively which can be carried forward indefinitely to offset its taxable income. As of March 31, 2017, the operations in the Malaysia incurred $271,841 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss can be carried forward indefinitely. The Company has provided for a full valuation allowance against the deferred tax assets of $54,369 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of March 31, 2017 and December 31, 2016:
|  | As of |  |  | As of |
|  | March 31, 2017 |  |  | December 31, 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  |  |  |  |  |  |  |
– United States of America |  | $ | 460,380 |  |  | $ | 412,900 |
– The PRC |  |  | 70,626 |  |  |  | 60,209 |
– Malaysia |  |  | 54,369 |  |  |  | 45,645 |
|  |  | 585,375 |  |  |  | 518,754 |
Less: valuation allowance |  |  | (585,375 | ) |  |  | (518,754 | )
Deferred tax assets |  | $ | - |  |  | $ | - |
Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets of $585,375 as of March 31, 2017. During the year ended March 31, 2017, the valuation allowance increased by $66,621, primarily relating to net operating loss carryforwards from the various tax regime.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration