The Company is subject to US Income taxes.

The Company’s subsidiary Fortune Delight Holdings Group Limited was incorporated in the British Virgin Islands. The British Virgin Islands is an income tax free jurisdiction.

Silver Channel, the Company former indirectly subsidiary was incorporated in Hong Kong and is subject to the Inland Revenue Ordinance of Hong Kong. Hong Kong adopted a uniform tax rate of 16.5% for all enterprises.

The Company’s former indirectly held subsidiaries that were incorporated in the PRC and are governed by the Income Tax Law of the PRC and various local income tax laws. Effective January 1, 2008, China adopted a uniform tax rate of 25% for all enterprises including foreign-invested enterprises.

For the years ended December 31, 2016 and 2015, the Company has not provided for income tax provision as it incurred substantial net operating loss during the years.

The Company’s management did not recognize any deferred tax assets at December 31, 2016 and 2015, as a result of the substantial net operating losses during the years ended December 31, 2016 and 2015 because the management was unable to determine when it would be able to generate taxable income to make use of such potential future tax assets.