NOTE 14 INCOME TAXES
Income is subject to taxation in various countries in which the Company and its subsidiaries operate or are incorporated. The loss before income taxes by geographical locations for the years ended December 31, 2016 and 2015 were summarized as follows:
| 2016 | 2015 | |||||||
| United States | $ | 177,046 | $ | 539,586 | ||||
| Foreign | 761,113 | 297,190 | ||||||
| $ | 938,159 | $ | 836,776 | |||||
Income tax expenses by geographical locations for the years ended December 31, 2016 and 2015 were summarized as follows:
| 2016 | 2015 | |||||||
| Current | ||||||||
| United States | $ | - | $ | - | ||||
| Foreign | - | - | ||||||
| $ | - | $ | - | |||||
| Deferred | ||||||||
| United States | $ | - | $ | - | ||||
| Foreign | - | - | ||||||
| $ | - | $ | - | |||||
The reconciliation of the effective income tax of the Company to the U.S. federal statutory rate was as follows:
| 2016 | 2015 | |||||||
| Expected income tax benefit | $ | 318,974 | $ | 284,504 | ||||
| Operating loss carried forward | (60,196 | ) | (183,459 | ) | ||||
| Nondeductible income (expenses) | - | - | ||||||
| Tax
effect on foreign income which is not subject to U.S. federal corporate income tax rate of 34% |
(258,778 | ) | (101,045 | ) | ||||
| $ | - | $ | - | |||||
An analysis of the Company’s deferred tax liabilities and deferred tax assets as of December 31, 2016 and 2015 was as follows:
| 2016 | 2015 | |||||||
| Deferred tax assets: | ||||||||
| Effect of net operating loss carried forward | $ | 8,577,316 | $ | 8,517,120 | ||||
| Less: valuation allowance | (8,577,316 | ) | (8,517,120 | ) | ||||
| Net deferred tax assets | $ | - | $ | - | ||||
The Company provided a full valuation allowance against the deferred tax assets as of December 31, 2016 and 2015 due to the uncertainty surrounding the realizability of these benefits in future tax returns.