NOTE 11. INCOME TAX
The domestic and foreign components of loss before income taxes for the years ended June 30, 2017 and 2016 is as follows:
| Years Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Domestic | $ | - | $ | - | ||||
| Foreign | (1,765,534 | ) | (392,286 | ) | ||||
| Loss from operations before income taxes | $ | (1,765,534 | ) | $ | (392,286 | ) | ||
The Company’s tax provision is zero because the Company is organized in the British Virgin Islands with no connection to any other taxable jurisdiction. The Company is considered to be an exempted British Virgin Islands Company, and is presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States.
A reconciliation of the statutory United States federal income tax rate to the Company’s effective tax is as follows:
| Years Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Statutory federal income tax rate | 34.0 | % | 34.0 | % | ||||
| Income and expenses not subject to US taxation | (34.0 | )% | (34.0 | )% | ||||
| Income tax provision (benefit) | 0.0 | % | 0.0 | % | ||||