REMEDENT, INC.

12. INCOME TAXES

The domestic and foreign (“Belgium”, “German”, “Italian”, Hong Kong and China) components of income (loss) before income taxes and minority interest were comprised of the following:

	March 31, 2017		March 31, 2016
Domestic	$	893,927	$	(136,872)
Foreign		(70,581)		336,599
	$	823,346	$	199,727

The Company’s domestic and foreign components of deferred income taxes are as follows:

	March 31, 2017		March 31, 2016
Domestic — Net operating loss carryforward	$	7,675,878	$	7,988,752
Foreign — Net operating loss carryforward		118,585		93,882
Total		7,794,463		8,082,634
Valuation allowance		(7,794,463)		(8,082,634)
Net deferred tax assets	$	-	$	—

Because of the uncertainty surrounding the timing of realizing the benefits of favorable tax attributes in future income tax returns, the Company has placed a valuation allowance against its deferred income tax assets.

The principal reasons for the difference between the income tax (benefit) and the amounts computed by applying the statutory income tax rates to the income (loss) for the year ended March 31, 2016 and March 31, 2015 are as follows:

	March 31, 2017			March 31, 2016
Domestic
Pre tax income (loss)	$	893,927		$	(136,872)
Statutory tax rate		35	%		35	%
Tax benefit based upon statutory rate		312,874			(47,905)
Valuation allowance		(312,874)			47,905
Net domestic income tax (benefit)		-			—
Foreign
Pre tax income (loss)		(70,581)			336,599
Statutory tax rate		35	%		35	%
Tax expense (benefit) based upon statutory rate		(24,703)			117,810
Permanent differences		24,703			(117,810)
		-			—
Net foreign income tax expense		(3,998)			22,065
Total Income tax	$	(3,998)		$	22,065