Note 7 - INCOME TAX

5V Inc. was incorporated under the law the United States of America laws, the statutory income tax rate is 35%.

5-V Holding Limited was incorporated under the current laws of the British Virgin Islands which is not subject to tax on income or capital gains.

5V Group Limited was incorporated under the Hong Kong tax laws, the statutory income tax rate is 16.5%. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

Shanghai BNC Biotechnology Co., Ltd. was incorporated under the China Enterprise Income Tax Law, or the EIT Law, domestic enterprises and foreign investment enterprises, or FIE, are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to tax holidays or exemptions.

The Company has operating losses that may be applied against future taxable income. The potential tax benefits arising from these losses carry forwards, which expire beginning the year 2030, are offset by a valuation allowance due to the uncertainty of profitable operations in the future.

The cumulative net operating loss carry forward as of September 30, 2017 and 2016 was $293,991 and $258,989, respectively. The significant components of the deferred tax assets as follows: