NOTE 8 – TAXATION
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| Year ended March 31, 2017 |
| Year ended March 31, 2016 |
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|
|
|
|
|
| Current - Hong Kong income tax expense | $ | - | $ | - |
| Deferred tax (income) - Accelerated amortization and depreciation allowances |
| (1,414) |
| (2,255) |
| Income tax (income) | $ | (1,414) | $ | (2,255) |
The Company did not derive any taxable income in United States. Hong Kong income tax is charged at 16.5% on assessable profits that generated from Hong Kong operations.
A reconciliation of the expected income tax expense with the actual income tax (income)/expense is as follows:
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| Year ended March 31, 2017 |
| Year ended March 31, 2016 |
|
|
|
|
|
|
| Expected income tax expense - At Federal rate of 34% | $ | (21,857) | $ | (32,153) |
| Deferral due to foreign income exclusion |
| 11,250 |
| 16,549 |
| Non-deductible expenses |
| 7,935 |
| 9,557 |
| Statutory tax deductions in Hong Kong |
| - |
| - |
| Tax losses not provided for deferred tax |
| 1,258 |
| 3,792 |
| Actual income tax (income)/expense | $ | (1,414) | $ | (2,255) |
Deferred tax liabilities as of the balance sheet date is analyzed as follows:
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|
| March 31, 2017 |
| March 31, 2016 |
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|
|
|
|
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| Accelerated amortization and depreciation allowances | $ | - | $ | 1,414 |