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INCOME TAXES | 9 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE－ 14 INCOME TAXES For the nine months ended September 30, 2021 and 2020, the local (“Nevada”) and foreign components of loss before income taxes were comprised of the following:
Schedule of Loss before income tax |  |  |  |  |  |  |  |
|  | Nine months ended September 30,
|  | 2021 |  | 2020
Tax jurisdiction from: |  |  |  |  |  |  |  |
- Local |  | $ | 14,272,684 |  |  | $ | — |
- Foreign |  |  | 1,246,371 |  |  |  | 2,507,042 |
Loss before income taxes |  | $ | 15,519,055 |  |  | $ | 2,507,042 |
The provision for income taxes consisted of the following:
Schedule of provision for income taxes |  |  |  |  |  |  |  |
|  | Nine months ended September 30,
|  | 2021 |  | 2020
Current: |  |  |  |
- United States |  | $ | — |  |  | $ | — |
- Singapore |  |  | — |  |  |  | — |
- Vietnam |  |  | — |  |  |  | — |
- India |  |  | 9,943 |  |  |  | 15,069 |
Deferred: |  |  |  |  |  |  |  |
- United States |  |  | — |  |  |  | — |
- Singapore |  |  | — |  |  |  | — |
- Vietnam |  |  | — |  |  |  | — |
- India |  |  | — |  |  |  | — |
Income tax expense |  | $ | 9,943 |  |  | $ | 15,069 |
The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: Singapore and Vietnam that are subject to taxes in the jurisdictions in which they operate, as follows: United States The Company is registered in the Nevada and is subject to the tax laws of United States. As of September 30, 2021, the operation in the United states incurred $25,094,900 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards has no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $5,269,929 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. Singapore The Company’s subsidiary is registered in the Republic of Singapore and is subject to the tax laws of Singapore. As of September 30, 2021, the operation in the Singapore incurred $1,437,668 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards has no expiration. The Company has provided for a full valuation allowance against the deferred tax assets of $230,027 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. Vietnam The Company’s subsidiary operating in Vietnam is subject to the Vietnam Income Tax at a standard income tax rate of 20% during its tax year. The reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2021 and 2020 is as follows:
Schedule of Effective Income Tax Rate Reconciliation |  |  |  |
|  | Nine months ended September 30,
|  | 2021 |  | 2020
Loss before income taxes |  | $ | (450,407 | ) |  | $ | (233,689 | )
Statutory income tax rate |  |  | 20 | % |  |  | 20 | %
Income tax expense at statutory rate |  |  | (90,081 | ) |  |  | (46,738 | )
Tax effect of allowance |  |  | 90,081 |  |  |  | 46,738 |
Income tax expense |  | $ | — |  |  | $ | — |
As of September 30, 2021, the operation in the Vietnam incurred $859,275 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire in 2026, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $171,855 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. India The Company’s subsidiary operating in India is subject to the India Income Tax at a standard income tax rate of 25% during its tax year. The reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2021 and 2020 is as follows:
|  | Nine months ended September 30,
|  | 2021 |  | 2020
Income before income taxes |  | $ | 17,716 |  |  | $ | (182,363 | )
Statutory income tax rate |  |  | 25 | % |  |  | 15 | %
Income tax expense at statutory rate |  |  | 4,429 |  |  |  | (27,354 | )
Tax effect of allowance |  |  | 5,514 |  |  |  | 42,423 |
Income tax expense |  | $ | 9,943 |  |  | $ | 15,069 |
As of September 30, 2021, the operation in the India incurred $17,716 of net operating gain. The Company has provided for a full tax effect allowance against the current and deferred tax expenses of $9,943. The following table sets forth the significant components of the deferred tax assets and liabilities of the Company as of September 30, 2021 and December 31, 2020:
Schedule of Deferred Tax Assets and Liabilities |  |  |  |
|  | September 30, 2021 |  | December 31, 2020
|  |  | (Unaudited) |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  |  |  |  |  |  |  |
- United States |  | $ | 5,269,929 |  |  | $ | 2,171,941 |
- Singapore |  |  | 230,027 |  |  |  | 131,985 |
- Vietnam |  |  | 171,855 |  |  |  | 81,774 |
- India |  |  | — |  |  |  | — |
|  |  | 5,671,811 |  |  |  | 2,385,700 |
Less: valuation allowance |  |  | (5,671,811 | ) |  |  | (2,385,700 | )
Deferred tax assets, net |  | $ | — |  |  | $ | — |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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