The Company’s operating subsidiary is governed by the Income Tax Laws of the PRC and various local tax laws. Effective January 1, 2008, China adopted a uniform tax rate of 25% for all enterprises (including foreign-invested enterprises).
The following table reconciles the statutory rates to the Company’s effective tax rate for the years ended December 31, 2016 and 2015:
| 2016 | 2015 | |||||||
| US statutory rates (benefit) | (34.0 | )% | (34.0 | )% | ||||
| Tax rate difference | 9.2 | % | 9.1 | % | ||||
| Valuation allowance on NOL | 24.2 | % | 24.6 | % | ||||
| Tax per financial statements | (0.6 | )% | (0.3 | )% | ||||
The income tax for the years ended December 31, 2016 and 2015, consisted of the following:
| 2016 | 2015 | |||||||
| Income tax (benefit) expense – current | $ | — | $ | — | ||||
| Income tax (benefit) expense – deferred | (31,651 | ) | (28,942 | ) | ||||
| Total income tax benefit | $ | (31,651 | ) | $ | (28,942 | ) | ||