| 15. |
Income Taxes |
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All of the Company’s continuing operations are located in the PRC. The corporate income tax rate in the PRC is 25%. |
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The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the years ended December 31, 2016 and 2015: |
| 2016 | 2015 | ||||||
| (Loss) income attributed to PRC continuing operations | $ | (84,936,317 | ) | $ | 11,806,807 | ||
| Loss attributed to U.S. operations | (338,200 | ) | (1,520,892 | ) | |||
| (Loss) income before tax | (85,274,517 | ) | 10,285,915 | ||||
| PRC Statutory Tax at 25% Rate | 1,898,616 | 3,362,784 | |||||
| Effect of tax exemption granted | - | - | |||||
| Income tax | $ | 1,898,616 | $ | 3,362,784 |
Per Share Effect of Tax Exemption
| 2016 | 2015 | ||||||
| Effect of tax exemption granted | $ | - | $ | - | |||
| Weighted average shares outstanding basic | 38,264,874 | 37,108,688 | |||||
| Per share effect | $ | - | $ | - |
The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the years ended December 31, 2016 and 2015:
| 2016 | 2015 | ||||||
| U.S. federal statutory income tax rate | 35% | 35% | |||||
| Lower rates in PRC, net | - 10% | - 10% | |||||
| Non-deductible GAAP expenses in the PRC | - 27.22% | - 27.23% | |||||
| The Company’s effective tax rate | - 2.22% | - 2.23% |