INCOME TAXES EXPENSES

3 Months Ended

Mar. 31, 2012

21.

INCOME TAXES EXPENSES

The entities within the Company file separate tax returns in the respective tax jurisdictions that they operate.

The Company is incorporated in the Cayman Islands, the laws of which do not require the Company to pay any income taxes or other taxes based on income, business activity or assets.

Victor Score is domiciled in the British Virgin Islands, the law of which does not require the company to pay any income taxes or other taxes based on income, business activity or assets.

Apex Wealth is domiciled in Hong Kong and subject to statutory profits tax of 16.5% if it incurred revenue and profits in Hong Kong.

Dalian Xinding is domiciled in PRC and subject to statutory profits tax of 25% if it incurred revenue and profits there.

TOFA, Tongda and their subsidiaries, all domiciled in PRC, are subject to PRC enterprise income tax of 15% for the three months ended March 31, 2012. As for the comparative periods ended March 31, 2011, TOFA and Tongda were subject to PRC enterprise income tax of 15% and 25% respectively.

The Company's income tax represents the income tax expenses from VIEs. The Company's other entities sustained losses and accordingly no income tax was provided.

	Three Months Ended March 31
	2012		2011
Current tax:	(Unaudited)		(Unaudited)
PRC income tax	$	319,745	$	489,227

The Company's income tax for the quarter ended March 31, 2012 and 2011 can be reconciled to the income before income tax expenses in the statement of operations as follows:

	Three Months Ended March 31,
	2012			2011
	(Unaudited)			(Unaudited)

Income before tax	$	2,094,065		$	3,949,361

Expected PRC income tax expense at statutory tax rate of 25%	$	523,516		$	947,038
Expense not deductible from PRC tax		5,635			(364,388	)
Tax concession		(209,406	)		(93,423	)
Actual income tax expense	$	319,745		$	489,227

In December 2008 and November 2010, TOFA and Tongda respectively were registered as the State Encouraged High and New Technology Enterprises. According to the PRC Law on Enterprise Income Tax promulgated on March 16, 2007, TOFA and Tongda are entitled to a concessionary rate of income tax at 15%. Accordingly TOFA is subject to an income tax rate of 15% in both 2011 and 2010, while Tongda has been subject to an income tax rate of 15% since January 1, 2011.

The Company’s effective income tax rate is 15.3% and 12.4% for the three months ended March 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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+ Details

TODA INTERNATIONAL HOLDINGS INC. 10-Q