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INCOME TAXES
 9 Months Ended
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:

 

          
   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:

 

           
   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:

 

      
   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:

 

      
   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  $—    $—