Taxable income : 90 x 15 + 120 = 1,470
Deductible income : 120 + 11 x 12 + 4.4 x 12 x 2 + 29.8 x 12 x 10.5% = 395.148
Assessable income : 1,470 - 395.148 = 1,094.852
PIT : 1,074.852 x 35% -9.850 x 12 = 258
As she was not handicapped, she is not qualified as a dependant though she has no income.
Total deduction : 11 x 12 = 132m
As his son is 10 year old and studying in a foreign country, and the tuition fee is paid directly so the
amount he received as tuition fee for his son is 100% deductible.
Taxable income : 20,000 x 23,500 = 470m
Deduction : 11 + 4.4 = 15.4
Assessable income : : 470 -15.4 = 454.6
PIT : 149.26
4 months in 2020 : 4 x 9 = 36m
6 months in 2021 : 6 x 11 = 66m
Total relief : 36 + 66 = 102m
Assessible income : (21.87 - 1.65)/0.8 = 25.3
Tax: 25.3 x 0.2 - 1.65 = 3.4
Taxable income: 2,241m
16.5m
18m
9.98m
PIT: 666.15m
(a) Total deduction : 266m
Self-deduction: 11 x 10 = 110m
Dependants: 4.4 x 10 + 4.4 x 5 = 66m
Donation to charity fund: 80m
Voluntary insurance allowance: 1 x 10 = 10m
(b) Tax treatment: total royalty received in VND minus 10 milion regardless of times received, then multiple with 5%:
For the year 2021: (40 x 23.5 - 10) x 5% = 46.5m
(a)
Taxable
Salary
Membership for golf club
Sales of shares
Medical insurance fees for his family
Shares dividends
Non-taxable
Car rental
Settlement of tuition fees
Medical insurance fees for himself
Taxable in the future
100,000 shares bonus
Total taxable income: 650 x 14 + 240 x 5/6 + 200 + 1,200 + 150 = 10,850
Total non-taxable income: 20 + 195 + 180 x 0.95 + 240/6 = 426m
Total taxable income in the future: 4,800m
Explanation for the tuition fees settlement: as stated above, the settlement for tuition fees is a standard benefit offered to all management
positions. Therefore, we can consider the settlement was distributed in welfare and bonus funds.
(a) Total taxable income:
BOFF Co
KNB Co
Income from salary:
65
15
Training allowances:
108/12
360/12
Self-deduction:
(11)
Dependant:
(4.4)
Compulsory insurance: (3.129)
Monthly assessable
income:
55.471
45
Monthly grossed
income: (x-5.85)/0.7 70.82
56
Monthly taxable income: 126.82
PIT for a month: 126.82 x 0.35 - 9.85 = 34.537
(a)
Salary:
Bonus:
Air fares:
Tuition fees:
Car:
Relocation
allowance:
Total
Taxable
35 x 13
1.5 x 7 + 2.5
15/2
0.6 x 36m x 12
_____
11,433.45
Non-taxable
96
1.5
15
0.4 x 36m x 12
15
_____
(b)
Deduction:
- Self-deduction: 11 x 12 = 132
- Dependants deduction: 4.4 x 2 x 12 = 105.6
- Insurance: 3.129
Taxable income bf housing allowance:
11,433.45 - 132 - 105.6 - 3.129 = 11,192.7
Housing allowance:
11,192.7 x 15% = 1,679 > 2.1 x 23.5 x 12 = 592.2
Taxable income include housing allowance:
592.2 + 11,192.7 = 11,785
PIT:
4,006.55
9. Mr. Phu Phan
(a) Taxable income:
- Salary:
30 x 9 x 23.5 = 6,345
- Fixed bonus:
60/12 x 9 x 23.5 = 1,057.5
- Fitness membership: 60 x 23.5 = 1,410
- Housing allowance: 9 x 6 x 23.5 = 1,269
Total taxable income
from salary:
10,081.5
Deduction:
- Self-deduction: 99
- Dependants: 79.2
Taxable income bf housing allowance: 9,903.3
PIT
- From salary: 3,377.505
- From license:
Taxable amount:
105.6
158.4
52.8
105.6
(a)
Bui Anh
Dang Thao
Phan Chi
Doan Giang
Taxable income
888
780
346
438
Self-deduction
105.6
158.4
52.8
105.6
SHUH
3.129
3.129
2.153
3.129
888
780
346
438
Adjustment to PBT of 2021:
1)
- Job A: (3,000 - 3,600) x 60/160 = -225
- Job B: (3,600 - 1,400) x 60/160 = 825
- Job C: 3,000 x 60/160 = 1,125
2)
- Non-business expense: 1,000
- Staff: 160
3)
As the bad debt expense has been added to PBIT of 2020, the recoverable is now deducted.
- Recovered bad debts: -1,200
Total adjustment: 1,525
Taxable income for 2021: 121,525
CIT for 2021: 24,305
7.5%
-> CIT for original investment is 7.5%, new investment is 20%, the rate is 1/2
CIT for non-op income: 20%
Add back 18
Add back: 4,300
Add back 38.4
Non-deductible: 180m
Non-taxable
Adjustment:
1. +455
2. +44
3. +90
4. +150
5. +80
20.716
13.466
(58,000)
(28,000)
(20,000)
(8,000)
56,000
Adjustment: 8,500 x 1.5 -2,000 = 10,750
Average number of employees: 75,000/(6.25 x 12) = 1,000
Adjustment to PBT
1) -1.125
2) +0.2
3) -10.75
4) +4
Adjustment to PBT
1) Depreciation:
- Original annual depreciation charge:
96,000 / 8 = 12,000
- Carrying amount: 96,000 - 12,000 x 2.5 = 66,000
- New depreciation charge: 66,000 / 4
= 16,500
- Adjustment: (12,000 - 16,500) x 3/12 =
2)
(1,125)
2,191.2
116.8
Will be eligible for CIT incentives, and will be determine by the ratio: 4/6
1.14
Expansion is treated as new project and still receive incentives
(a)
- In the form of asset: The gain/loss arising from revaluation in the form of capital contribution is taxable/deductible in the year
- In the form of Land use right with indefinite life: To be defer as taxable income and distributed over 10 years
- When dispose of the capital contribution: pay tax on the full capital contribution gain and pay the gain from land
(b)
30 Sept 2020
Taxable income from building contribution: 3,000
Taxable income from land contribution: (120-10)/10 x 6/12 = 5,500
30 Sept 2021
Taxable income from disposal of land contribution: 93,500
Taxable income from transfer of capital: 15,000
24,125
14,475
-> 120 employees -> deductable : 360
1.
1. Tools and equipments:
Do not deduct:
4,730 - 4,300 x 8/24
2. Voluntary life insurance for personnel:
Number of employee: 5,600/280 x 6 = 120
-> deductible: 120 x 3 x 12 = 4320
3. Remuneration expenses
Deductible when paid
4. Uniform expense
Deductible at 5m/person: 120 x 5 = 600
Qualified welfare expenses:
Assessable the excess of 1 month cap:
2,380 - 1,200
5. Retirement payment
Total adjustment
3,297
1,280
0
800
1,180
-1200
______
5,357
(b)
Share capital 25 x 80% x 23,500
Purchase price 500,000 x 80%
Taxable gain
Tax
470,000
400,000
70,000
14,000
(c) The tax authorities can impose to use the equity value as the selling price, CIT would be 160,000
(a)
Loans borrowed to finance the investment in another company is deductible
Loans borrowed to finance business operation due to failure of contribution to charter capital
by investors are non-deductible in proportion to the corresponding shortage contribution
(b)
Deductible
Interest expense of Fundly Co:
100 x 9% x 9/12 = 6.75
Interest expense of VSB Co:
(200 x 10% + 100 x 10.5%) x 9/12 = 22.875
Non-deductible
6.75
3.8125
19.0625
No adjustment
-> deduct
-> deduct
-> non-deduct
1,440 deductible, 460 non deductible
add back 450
non deductible
as in cash
not stated in the
lease agreement
(b)
(1) The input can be reclaimed
(2) 30-seater bus can be deducted in full
4-seater car can only be deducted at
(3) Gifts on Tet holiday
(4) Damaged goods
Creditable
2,400
150
160
295
180
non- creditable
90
Output VAT = input VAT
Output VAT = selling price x 10%