| 6. | Income Taxes |
The Company and its subsidiaries file separate income tax returns.
The United States of America
The Company was incorporated in the State of Wyoming in the U.S., and is subject to a gradual U.S. federal corporate income tax of 15% to 35%. The State of Wyoming does not impose any corporate state income tax.
Samoa
TGL is incorporated in the Samoa. Under the current laws of the Samoa, TGL is not subject to tax on income or capital gains. In addition, upon payments of dividends by TGL, no Samoa withholding tax is imposed.
Hong Kong
TAL is incorporated in Hong Kong and Hong Kong’s profits tax rate is 16.5%. TAL HK did not earn any income that was derived in Hong Kong for the years ended December 31, 2016 and 2015, and therefore, TAL HK was not subject to Hong Kong profits tax.
The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. For the years ended December 31, 2016 and 2015, the Company incurred losses, resulting from operating activities, which result in deferred tax assets at the effective statutory rates. The deferred tax asset has been off-set by an equal valuation allowance.
| For the year ended December 31, |
|||||||||
| 2016 | 2015 | ||||||||
| Loss before income taxes | $ | (1,323,333 | ) | $ | (952,983 | ) | |||
| Tax at the income tax rate 34% | (449,934 | ) | (324,014 | ) | |||||
| Valuation allowance | 442,727 | 324,014 | |||||||
| Income taxes | $ | (7,207 | ) | $ | - | ||||