NOTE 7 – INCOME TAXES

The income taxes provision for the twelve months ended December 31, 2018 consists of current income tax of $nil.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law including one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate from 34% to 21% effective January 1, 2018, among others. We are required to recognize the effect of the tax law changes in the period on enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. The Company does not have any foreign earnings and therefore, we do not anticipate the impact of a transition tax. Since the Tax Act was passed late in the fourth quarter of 2017 and ongoing guidance and accounting interpretation are expected over the next 12 months, we consider the accounting of any transition tax, deferred tax remeasurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118, no later than fiscal year ended December 31, 2018.

The Company reasonably estimated the effects of the U.S. Tax Act and recorded provisional amounts in our financial statements as of December 31, 2017. The Company recorded a provisional tax benefit for the impact of the U.S. Tax Act of approximately $77,974. This amount primarily comprised the remeasurement of federal net deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%.

Interest associated with unrecognized tax benefits is classified as income tax and penalties are included in selling, general and administrative expenses in the statements of operations and comprehensive income.

	For the years ended December 31,
	2018			2017
Income (loss) before tax	$	(34,186	)	$	167,445
Income tax at U.S. statutory rates (21%)		(7,179	)		56,932
State tax		-			9,769
Prior period over-accrual		-			(8,310	)
Nondeductible expenses		-			19,583
Change in valuation allowance		7,179			-
Provision for income taxes	$	-		$	77,974

Uncertain Tax Positions

Interest associated with unrecognized tax benefits is classified as income tax and penalties are included in general and administrative expenses in the statements of operations and comprehensive income. For the years ended December 31, 2018 and 2017, the Company had no unrecognized tax benefits and related interest and penalties expenses. The Company’s 2015, 2016 and 2017 tax years remain subject to examination by the U.S. tax authorities.