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Deferred Tax, Net
 12 Months Ended
Dec. 31, 2021
Deferred Tax Assets Liabilities Net Disclosure [Abstract]  
DEFERRED TAX, NET

7. DEFERRED TAX, NET

 

Deferred tax assets resulted from asset impairment loss which was temporarily non-tax deductible for tax purposes but expensed in accordance with US GAAP; interest income in sales-type leases which was recognized as income for tax purposes but not for book purpose as it did not meet revenue recognition in accordance with US GAAP; accrued employee social insurance that can be deducted for tax purposes in the future, and the difference between tax and accounting basis of cost of fixed assets which was capitalized for tax purposes and expensed as part of cost of systems in accordance with US GAAP. Deferred tax liability arose from the difference between tax and accounting basis of net investment in sales-type leases.

 

As of December 31 2021 and 2020, deferred tax assets consisted of the following:

   2021   2020 
Accrued expenses  $61,301   $70,019 
Write-off Erdos TCH net investment in sales-type leases *   6,299,343    6,155,300 
Impairment loss of Xi’an TCH’s investment into the HYREF fund   2,940,854    
-
 
US NOL   463,508    254,035 
PRC NOL   10,189,545    10,849,690 
Total deferred tax assets   19,954,551    17,329,044 
Less: valuation allowance for deferred tax assets   (19,954,551)   (17,329,044)
Deferred tax assets, net  $
-
   $
-
 

 

*This represents the tax basis of Erdos TCH investment in sales type leases, which was written off under US GAAP upon modification of lease terms, which made the lease payments contingent upon generation of electricity.