NOTE 6. INCOME TAXES
The Company is subject to a statutory tax rate of 34% under United States of America tax law. No provision for income taxes in the United States or elsewhere has been made as it had no taxable income since its inception.
The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income statutory tax rates to pretax loss as follows:
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For the year ended December 31, 2016 |
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For the eleven months ended December 31, 2015 |
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Loss before income taxes |
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$ | (51,209 | ) |
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$ | (55,308 | ) |
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Tax benefit at statutory rates |
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17,411 |
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18,805 |
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Change in valuation allowance |
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(17,411 | ) |
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(18,805 | ) |
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Net provision for income taxes |
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$ | - |
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$ | - |
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Net deferred tax assets consist of the following components:
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December 31, 2016 |
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December 31, 2015 |
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Deferred tax asset: |
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Net operating loss carry forwards |
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$ | 48,445 |
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$ | 31,034 |
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Valuation allowance |
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(48,445 | ) |
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(31,034 | ) |
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Net deferred tax asset |
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$ | - |
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$ | - |
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The Company has accumulated net operating loss carryovers of approximately $142,483 as of December 31, 2016 which are available to reduce future taxable income. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for federal income tax reporting purposes may be subject to annual limitations. A change in ownership may limit the utilization of the net operating loss carry forwards in future years. The tax losses begin to expire in 2034. The fiscal year 2016 remains open to examination by federal tax authorities and other tax jurisdictions.