INCOME TAXES

12 Months Ended

May 31, 2019

NOTE 5 – INCOME TAXES

The provision (benefit) for income taxes for the years ended May 31, 2019 and 2018 consists of the following:

	2019			2018
Current
Federal	$	-		$	-
State		-			-
Deferred
Federal		(14,598	)		(1,088	)
State		(1,417	)		(106	)
Change in valuation allowance		16,015			1,194
Total	$	-		$	-

For the years ended May 31, 2019 and 2018, the Company's income tax rate computed at the statutory federal rates of 21% and 34%, respectively, differs from its effective tax rate primarily due to permanent items, state taxes and the change in the deferred tax asset valuation allowance

	2019			2018
Income tax at statutory rate		34.00	%		34.00	%
State income taxes, net of federal benefit		3.30			3.30
Change in valuation allowance		(37.30	)		(37.30	)
Total		0.00	%		0.00	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realizability of deferred tax assets, Management evaluates whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on Management's evaluation, the net deferred tax asset was offset by a full valuation allowance in all periods presented. The Company's deferred tax asset valuation allowance will be reversed if and when the Company generates sufficient taxable income in the future to utilize the tax benefits of the related deferred tax assets.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and tax liabilities as of May 31, 2019 and 2018 are as follows:

	2019			2018
Net operating loss	$	42,936		$	3,200
Amortization of organization costs		-			-
Gross deferred tax assets		42,936			3,200
Less: Valuation allowance		(42,936	)		(3,200	)
Net deferred tax asset	$	-		$	-

As of May 31, 2019, the Company had a net operating loss carry-forward of approximately $113,000 which may be used to offset future taxable income and begins to expire in 2039. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

AMPERICO CORP 10-K