| 8. | INCOME TAX |
Provision for income taxes consisted of the following:
| For the year ended | ||||||||
| December 31, 2016 |
December 31, 2015 |
|||||||
| Current: | ||||||||
| Provision for Malaysian income tax | $ | 725 | $ | 121 | ||||
| Provision for U.S. income tax | - | - | ||||||
| Deferred: | ||||||||
| Provision for Malaysian income tax | - | - | ||||||
| Provision for U.S. income tax | ||||||||
| $ | 725 | $ | 121 | |||||
Malaysia
Malaysia HWGG recorded a loss before income tax of $583,804 and $171,205 for the year ended December 31, 2016 and 2015, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 24% and 25% for the years ended December 31, 2016 and 2015, respectively, to income before income taxes are as follows:
| For the year ended | ||||||||
| December 31, 2016 |
December 31, 2015 |
|||||||
| Profit (loss) before income tax | $ | (583,804 | ) | $ | (171,205 | ) | ||
| Permanent difference | 586,704 | 171,689 | ||||||
| Taxable income | $ | 2,900 | $ | 484 | ||||
| Malaysian income tax rate | 24 | % | 25 | % | ||||
| Current tax expenses | $ | 725 | $ | 121 | ||||
| Less: Valuation allowance | - | |||||||
| Income tax expenses | $ | 725 | $ | 121 | ||||
United States of America
HWGG is a company incorporated in State of Nevada and recorded a loss before income tax of $208,830 and nil for the year ended December 31, 2016 and 2015, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the United States Federal income tax rate of 34% for the years ended December 31, 2016 and 2015, respectively, to income before income taxes are as follows:
| For the year ended | ||||||||
| December 31, 2016 |
December 31, 2015 |
|||||||
| Profit (loss) before income tax | $ | (208,830 | ) | $ | - | |||
| Permanent difference | 208,830 | - | ||||||
| Taxable income | $ | - | $ | - | ||||
| Malaysian income tax rate | 34 | % | 34 | % | ||||
| Current tax expenses | $ | - | $ | - | ||||
| Less: Valuation allowance | - | |||||||
| Income tax expenses | $ | - | $ | - | ||||
No deferred tax has been provided as there are no material temporary differences arising during the year ended December 31, 2016 and 2015.