Income Tax Payable

12 Months Ended

Dec. 31, 2016

NOTE 5 - INCOME TAX PAYABLE

United States

Heyu Leisure Holidays Corporation is incorporated in United States, and is subject to corporate income tax rate of 34%. As of December 31, 2016, the company has net operating losses of approximately $288,860 that begin expiring in 2032. The potential benefit of the company’s net operating losses has not been recognised in these financial statements because the company cannot be assured it is more likely-than-not it will utilize the net operating losses carried forward.

Hong Kong

Heyu Capital Limited is subject to Hong Kong profit tax at a rate of 16.5% in 2015 and 2016. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the period presented. As of December 31, 2016, HK entity has net operating losses of approximately $4,685,200. Valuation allowance has been fully provided since it is more likely-than-not it will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant.

China

Under the Law of People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. As of December 31, 2016, the PRC entities have net operating losses of approximately $1,763,988 that begin expiring in 2019. The potential benefit of the company’s net operating losses has not been recognized in these financial statements because it is more likely-than-not it will not utilize the net operating losses carried forward as it does not expect to generate sufficient taxable income in future or the amount involved is not significant

	December 31, 2016			December 31, 2015
Deferred Tax Assets and Liabilities:
Net operating loss carry forwards	$	1,312,267		$	1,085,288
Valuation allowance		(1,312,267	)		(1,085,288	)
Net deferred tax assets	$	-		$	-

The Taxes payable was $40,563 and $38,505 as of December 31, 2016 and December 31, 2015:

	As at December 31, 2016		As at December 31, 2015
Business tax payable	$	27,224		25,619
Urban Construction tax payable		1,891		1,793
Others		11,448		11,093

Total	$	40,563	$	38,505

Heyu Leisure Holidays Corp 10-K