IWEB, Inc.

NOTE 7 - INCOME TAXES

(a)	The local (United States) and foreign components of loss before income taxes were comprised of the following:

	Years ended December 31,
	2017		2016

Tax jurisdictions from:
- Local	$	(140,786)	$	-
- Foreign, representing:
BVI		(84,942)		-
Thailand		(226,199)		(112,405)

Loss before income taxes	$	(451,927)	$	(112,405)

United States of America

The Company is incorporated in the State of Nevada and is subject to the U.S. federal tax and state statutory tax rates of up to 34% and 0%, respectively. No provision for income taxes in the United States has been made as the Company had no taxable income for the years ended December 31, 2017 and 2016.

British Virgin Islands

Under the current laws of the British Virgin Islands, entities incorporated in British Virgin Islands are not subject to tax on their income or capital gains.

Thailand

The statutory corporate income tax rate in Thailand (“CIT”) is 20%.

Digiwork, assuming a paid-in capital not exceeding 5 million Thai baht (THB)($153,604) at the end of any accounting period and income from the sale of goods and/or the provision of services not exceeding THB 30 million ($921,625) in any accounting period, is subject to CIT in Thailand at the following reduced rates:

For accounting periods beginning on or after January 1, 2017:

Net profit
Nil – THB300,000 ($9,216)	0	%
THB300,000 – THB3,000,000 ($92,162)	15	%
Over THB3,000,000 ($92,162)	20	%

A reconciliation of loss before income taxes to the effective tax rate as follows:

	Years ended December 31,
	2017			2016

Loss before income taxes	$	(451,927)		$	(112,405)
Statutory income tax rate		34	%		34	%
Income tax credit computed at statutory income tax rate		(153,655)			(38,218)
Reconciling items:
Non-deductible expenses		20,141			21,278
Tax effect of tax exempt entity		28,880			-
Rate differential in different tax jurisdictions		31,668			15,737
Provisional re-measurement of deferred taxes – TCJ Act		(43,026)
Valuation allowance on deferred tax assets		115,992			1,203

Total tax expenses	$	-		$	-

(b)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2017 and 2016 are presented below

	December 31,
	2017		2016

Deferred tax assets:
Net operating loss carryforwards:
- United States of America	$	60,154	$	-
- Thailand		27,520		1,193
		87,674		1,193
Less: Valuation allowance		(87,674)		(1,193)
	$	-	$	-

Tax Cuts and Jobs Act (“TCJ Act”)

During the fourth quarter of 2017, the TCJ Act was enacted in the United States. Among its many provisions, the TCJ Act imposed a mandatory one-time transition tax on undistributed international earnings and reduced the U.S. corporate income tax rate to 21%, effective January 1, 2018. The Company is required to re-measure its deferred tax assets and liabilities to the new, lower U.S. corporate income tax rate, effective January 1, 2018. The effect of the remeasurement was recorded in the fourth quarter of 2017, consistent with the enactment date of the TCJ Act, and reflected in the provision for income taxes. The Company has accumulated net operating loss carryovers of approximately $286,446 as of December 31, 2017, which are available to reduce future taxable income. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $145,660 for federal income tax reporting purposes may be subject to annual limitations. A change in ownership may limit the utilization of the net operating loss carry forwards in future years. The tax losses begin to expire in 2035. The fiscal years 2016 and 2017 remain open to examination by federal tax authorities and other tax jurisdictions.

As of December 31, 2017 and 2016, Digiwork had net operating loss carry forwards of $137,598 and $5,966, respectively, which will expire in various years through 2022. Its tax years 2016 and 2017 remain open to examination by the local authorities.

Management believes that it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential tax benefits.