Annual report pursuant to Section 13 and 15(d)

Taxation (Tables)

v3.7.0.1
Taxation (Tables)
12 Months Ended
Dec. 31, 2016
Taxation [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The components of the provision for income taxes expenses are:
 
 
 
For the years ended
 
 
 
December 31,
 
 
 
2016
 
2015
 
 
 
$
 
$
 
Current
 
 
1,471,933
 
 
809,629
 
Deferred
 
 
(32,756)
 
 
9,107
 
Total income tax expense
 
 
1,439,177
 
 
818,736
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The reconciliation of income taxes expenses computed at the statutory tax rate applicable to the Company to income tax expenses is as follows:
 
 
 
For the years ended December 31,
 
 
 
2016
 
2015
 
 
 
$
 
$
 
Income before tax
 
 
7,066,954
 
 
4,279,006
 
 
 
 
 
 
 
 
 
Provision for income taxes at applicable income tax rate
 
 
1,866,878
 
 
988,833
 
Effect of preferential tax rate
 
 
(959,453)
 
 
60,060
 
R&D expenses eligible for super deduction
 
 
(546,088)
 
 
(546,156)
 
Non-deductible expenses
 
 
146,493
 
 
59,122
 
Change in valuation allowance
 
 
931,347
 
 
256,877
 
Effective enterprise income tax
 
 
1,439,177
 
 
818,736
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred tax assets and deferred tax liabilities reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purpose and the tax bases used for income tax purpose. The following represents the tax effect of each major type of temporary difference.
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
 
 
$
 
$
 
 
 
 
 
 
 
Tax loss carry-forward
 
 
4,274,881
 
 
3,382,543
 
Allowance for doubtful receivables
 
 
121,932
 
 
47,197
 
Impairment for inventory
 
 
98,276
 
 
217,733
 
Difference for sales cut-off
 
 
14,245
 
 
33,071
 
Deferred income
 
 
114,224
 
 
131,992
 
Property, plant and equipment subsidized by government grant
 
 
468,313
 
 
490,883
 
Impairment for property, plant and equipment
 
 
76,248
 
 
-
 
Total gross deferred tax assets
 
 
5,168,119
 
 
4,303,419
 
Valuation allowance
 
 
(3,690,358)
 
 
(2,759,105)
 
Total net deferred tax assets
 
 
1,477,761
 
 
1,544,314
 
Summary of Operating Loss Carryforwards [Table Text Block]
The following represents the amounts and expiration dates of operating loss carried forwards for tax purpose:
 
 
 
$
 
 
 
2019
 
 
 
300,520
 
2020
 
 
 
1,553,667
 
2021 and thereafter
 
 
 
2,042,635
 
Total
 
 
 
3,896,822