INCOME TAXES

9 Months Ended

Sep. 30, 2020

NOTE 5 – INCOME TAXES

ABV Consulting, Inc. was formed in 2013. Prior to the acquisition of ABV HK in June 2017, the Company only had operations in the United States. In June 2016, the Company became the parent of ABV HK., a wholly owned Hong Kong subsidiary, which files tax returns in Hong Kong.

For the nine months ended September 30, 2020 and 2019, the local (“United States of America”) and foreign components of loss before income taxes were comprised of the following:

	Nine Months Ended
	September 30,
	2020			2019
Tax jurisdiction from:
- Local	$	-		$	-
- Foreign		(25,189	)		(48,720	)
Loss before income taxes	$	(25,189	)	$	(48,720	)

Hong Kong

The Company’s subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax at a standard income tax rate ranging from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year. The reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2020 and 2019 is as follows:

	Nine Months Ended
	September 30,
	2020			2019
Loss before income taxes from HK operation	$	(25,189	)	$	(48,720	)
Statutory income tax rate		8.25	%		8.25	%
Income tax expense at statutory rate		(2,078	)		(4,019	)
Tax losses carryforward		2,078			4,019
Income tax expense	$	-		$	-

ABV CONSULTING, INC. 10-Q