Exercise 1

Enterprise A in the current tax year has the following activities (unit: million VND):
a. Revenue from sales of goods: 20,000, including the value of returned goods of
2,000.
b. Expenses declared by the enterprise for tax purposes are 16,000 (with legitimate
invoices and documents). Including:
 Depreciation expense of a 7-seat car (with the primary price of 2.4 billion
VND, used by the Director. The car is depreciated using straight-line method
within the period of 8 years): 300.
 Expense for building medical facilities for employees: 100.
 Salary and wages (according to labor contracts): 2,000; in which 400 is the
remuneration of members of Board of Directors (not directly involved in
directing production and business).
 Efficiency bonuses for employees: 50
 Personal income tax payable: 150; VAT payable according to credit-invoice
method: 250.
 Other expenses are deductible.
c. Other incomes:
 Income from domestic contribution of equity capital to company B; enterprise
A receives its share of income before company B pays CIT: 200.
 Income from selling a machine with the price of 300, the remaining value of
the machine is 20, the transfer expense is 2.
Calculate the CIT payable for the tax year. Given:
 The enterprise has sold the returned goods with the selling price of 1,500; the
amount received is not accounted in revenue.
 The enterprise pays VAT using the credit invoice method.
 The efficiency bonuses are not prescribed in labour contracts, finance regulations
or rewards regulations of the enterprise.
 The CIT rate is according to current regulations on CIT.

Exercise 2
Enterprise X in the current tax period has the following activities (unit: million VND)
a. Revenue from sales of goods: 25,000; including revenue from sales of Excise-
taxable goods of 3,000.
b. Expenses declared by the enterprise for tax purpose are 20,000 (with legitimate
invoices and documents). Including:
 Depreciation expenses according to current regulations: 800, in which 50 is
the depreciation expense of an operating lease asset and 100 is the
depreciation expense of a financial lease-purchase asset. (LESSEE)
 Expense for buying life insurance contracts for employees (not specified in
labour contracts): 100
 Rewards for innovation ideas: 200
 Efficiency bonuses for employees: 50
 Work outfits expense in cash: 300
 Interest expense for a loan from corporation B: 250; the interest rate written
on the loan contract is 20%.
  Funding for buying study equipments for Kim Lien elementary school: 50.
 Other expenses are deductible.
c. Other incomes:
 Income from providing harvesting service: 120.
 Income from a science research contract (this is the 4 th year the enterprise
receives income from this contract): 150
 Income from domestic contribution of equity capital to company B; enterprise
X receives its share of income after company B pays CIT: 300.
Calculate the CIT payable of the enterprise in the tax year. Given:
 The enterprise has not organized a council for test and acceptance of innovations
and improvements.
 The efficiency bonus is not specified in the labour contracts.
 The prime interest rate announced by the State Bank of Vietnam at the time of the
loan contract: 12%; the enterprise has fully contributed its charter capital.
 The number of employees in the enterprise: 50.
 The CIT rate is according to current regulation. The excise tax rate of excise
taxable goods is 50%. The enterprise did not receive any tax exemption or
reduction in the tax year.

Exercise 3
AN PHAT Corporation in the current tax period has the following activities (unit: million
VND)
a. Revenue from sales of goods: 30,000; including revenue from sales of Excise-
taxable goods of 2,000; E.T rate: 25%
b. Expenses declared by the enterprise for tax purpose are 20,000 (with legitimate
invoices and documents and do not include the excise tax payable). Including:
 Depreciation expenses according to current regulations: 500, in which 50 is
the depreciation expense of a machine which has been fully depreciated but
still used for production
 Material expenses according to production norm (VAT-inclusive): 3,300.
 Medical expenses for employees: 50
 Expense of renting fixed asset: 400 (prepaid for 2 years)
 Funding for building houses for the poor: 160
 Donations for local women association: 10
 Scientific Expense: 300
 Other expenses are deductible.
c. Other incomes:
 Income from leasing fixed asset: 200.
 Income from international investments: 1,200. This is the income after paying
corporate income tax in the foreign country with the tax rate of 25%.
Calculate the CIT payable of the enterprise in the tax year. Given:
 The company pay VAT using the credit-invoice method.
 The company does not have a science research and technology development fund;
1/3 of the research and development expense is funded by the Government.
 Vietnam and the foreign country have not yet signed a tax treaties to avoid double
taxation.
  The CIT rate is according to current regulation. The excise tax rate of excise
taxable goods is 25%. The enterprise did not receive any tax exemption or
reduction in the tax year.

Exercise 4
HOANG HA Corporation in the current tax period has the following activities (unit:
million VND)
a. Revenue from sales of goods: 50,000
b. Expenses declared by the enterprise for tax purpose are 40,000 (with legitimate
invoices and documents). Including:
 Salary and wages (according to labor contracts): 5,000; in which 400 is the
remuneration of members of Board of Directors (not directly involved in
directing production and business).
 Research and development expense: 300
 Protective clothes expense: 100.
 Funding for building medical center for the poor: 120.
 Fines for late tax payment: 20; fines for breaking business contracts: 50.
 Advertising expenses: 750, in which 50 is expense of market research.
 Other expenses are deductible.
c. Other incomes:
 Income from harvesting service: 50.
 Income from business contract breach: 20.
 Income from international investments: 820. This is the income after paying
corporate income tax in the foreign country with the tax rate of 18%.
Calculate the CIT payable of the enterprise in the tax year. Given:
 The company pay VAT using the credit-invoice method.
 The company does not have a science research and technology development fund;
1/3 of the research and development expense is funded by the Government.
 Vietnam and the foreign country have not yet signed a tax treaties to avoid double
taxation.
 The CIT rate is according to current regulation. The enterprise did not receive any
tax exemption or reduction in the tax year.

Exercise 5
Enterprise D in the current tax period has the following activities (unit: million VND):
1. The CIT payable determined by the enterprise: 2,000
2. In the list of expenses declared by the company, there are some following
expenses:
 Depreciation expense of the cafeteria serving employees (according to
regulations): 100.
 Expense of buying fixed asset: 1,000 (the depreciation expense of the fixed
asset has been accounted in the total depreciation expense of that year).
 Expense for contribute charter capital of a private high school: 1,000.
 Expense for funding building a hospital in Muong Nhi province: 2,000
 Fines for non-compliance with the law: 20
 Expense for buying life insurance for employees: 100
  Other expenses are deductible
3. The exempt incomes declared by the company include:
 Income from agricultural harvesting service: 50
 Income from the sale of products turned out from production with technology
applied for the first time in Vietnam: 200. This is the 6 th year the enterprise
receive this income.
 Income from domestic contribution of equity capital to company A;
enterprise X receives its share of income before company A pays CIT: 300.
Calculate the CIT payable of the enterprise in the tax year. Given:
 The CIT rate is according to current regulation. The enterprise did not receive
any tax exemption or reduction in the tax year.
 The life insurance is not specified in the labor contract.
 All the expenses are with legitimate invoices and documents.

Exercise 6:
There were some information extracted from An Binh Ltd‘s financial statements in
2017: (unit: by million VND)
1. Revenue of sales goods: 18,000, including returned goods: 400
2. Total expenses relating business aspect (legitimate invoices and document): 10,000.
Including:
- Depreciation expense of fixed assets: 500, including 150 of depreciation assets
which had been fully depreciated last year.
- Sponsored medical systems for a hospital in Sapa highland: 500
- Salaries and wages: 1,200, given that 150 of which was remenurarions of Members
of the Board but not invovled directly in the business.
- Interest (used for business) paid: 800. Including: interest paid to Vietcombank: 200
and interest paid to the staff: 600 with interest rate written on the loan contract: 12%
per annual.
- Expense for ware house construction: 320
- Personal income tax deducted at source: 2,000
- Other expenses were deductible.
3. Other income: Compensation received due to sales contract breach: 150
Income from plant harvesting service: 300
Income from domestic invesment taken afer paying CIT in the invested
company: 500
4. Income from overseas invesment taken afer paying CIT in the foreign country: 410.
Foreign CIT tax rate: 18%. Vietnam and that country have not signed any Double
taxation Agreement.
5. Loss carried forward from previous 2 years: 1,000
 You are required to compute Corporate income tax payable of An Binh Ltd in 2017
Assumed that:
- Coporate income tax rate is most updated.
- Prime iterest rate announced from the State Bank: 7% per annual. Company has
contributed full charter capital.
- VAT credit invoice method applied. Trading transactions were by non – cash
payment.
Exercise 7:
An enterprise in the tax period has recorded: (unit by million VND)
Turnover: 50.000
Total expense: 30.000 (presented by legitimate invoice, excluding excise tax)
- Depreciation expense: 2.000, including 300 – of a fixed asset has been
fully depreciated.
- Material expense (based on business norm, 10%VAT inclusive): 5.500
- Interest expense: 1.000, including 200: interest paid for credit institution
and 800 of which is interest paid for employee in the loan contract with
interest rate 20%/year. Given that enterprise contributed full charter
capital.
- Expense for Innovation bonus: 50 but it was not accepted by the Council.
- Salary paid: 2.000, including 300 of salary of founding member who are
not directly involved in directing business.
- Work outfits in cash: 500. Number of employee: 90
- Registration fee: 250, fines for accounting law breach: 100
- Other expenses are deductible.
The other income: 300 – Income before tax from domestic contribution of Equity Capital
to Company A.
(?) Calculate the CIT payable of enterprise. Given:
- Enterprise applies credit invoice method.
- Prime interest rate announced by the State Bank of Vietnam: 8%/year.
- Loss carried forward from 2 years ago: 5.000. CIT rate accords to current
regulation.
Exercise 8:
According to its draft financial statement, ELSA Ltd has accounting profits before tax
of VND500,000 million in 2020.
The following issues which were recorded in the accounting profits are noteworthy for
the purposes of the company’s corporate income tax (CIT) finalisation:
1. Accrued wages and allowances of VND20,000 million were not paid before the
deadline for CIT finalisation.
2. Material expense: 5,500 million including 10% VAT
3. Uniform expenses (supported with valid documents) were VND 900 million made
in kind. Company has 130 employees.
4. Interest (used for business) paid to BIDV: 1,000 million. The deficit of capital:
5,000 million, interest rate of BIDV: 10% per annual.
5. Fines of tax law violation: 200 million
6. Sponsor 50,000 million to build new hospital to Bac Ha district, Lao Cao province.
7. Other income of VND 2,000 million was received from a domestic capital
contribution contract (BBC) which FATA Ltd had entered into. The amount were after
deducting CIT at the rate 20% which was declared and paid by an investee company.
Caculate CIT liability of ELSA company.
Assuming that ELSA company has been charged for the cost of the marketing support
services which the Head office provides. Discuss whether marketing expense is
deductible or not.

Exercise 9:
According to its draft financial statement, Mate’s Ltd has accounting profits before tax
of VND400,000 million in 2020. The following issues which were recorded in the
accounting profits are noteworthy for the purposes of the company’s corporate income
tax (CIT) finalisation:
1. Depreciation of machine, which 500 million of fully depriciated
2. Purchases of materials with legal invoices: 10,000 million and without invoices
amounted to VND8,000 million
3. Uniform expenses (supported with valid documents) were VND700 million paid in
cash, Mate’s Ltd had an average of 100 employees during the year 2020.
4. Interest (used for business) paid to the staff: 800 with interest rate written on the
loan contract: 15% per annual. Given that prime iterest rate announced from the State
Bank: 7% per annual. Company has contributed full charter capital.
5. Education sponsor VND 500 million VND to a non-licensed private disable and poor
children fund operated by the director.
7. Fine for economics contract breach: 200 million
 6. Other income of VND 40,000 million was received from a domestic capital
contribution contract (BBC) which Mate’s Ltd had entered into. The amount were
before deducting CIT at the rate 20% by an investee company.
8. Other income of VND 50,000 million was received from a scientific and technology
contract, this is 2nd year of receipt.
Caculate CIT liability of Mate’s company.
PIT
PIT Case No.3:
Mr. James Olly, British, 40 years old, a tax accountant, worked continuously 12 years in
Dong Tien Packaging and Paper Ltd in Vietnam. According to legal records, his personal
incomes were received in Vietnam in the tax year 2020 as follows (unit by VND):
- Salary before tax: 50 million per month
- Overtime: 300 million (his overtime was consistently paid at 150% of his normal wage).
- Bonus: 60 million
- Work outfits: 10 million paid in cash
- Lunch: 3 million per month paid in cash
- In addition to his employment, Mr. James has also entered into an employment contract
with another company as a part-time tax consultant from 1 April 2020. According to the
labour contract, a fixed wageof 20 million per month was paid.
- In March 2020, he won the lottery of 5 million
- In May 2020, he sold an apartment of 2 billion in Vietnam to his adopted daughter.
During the period in Vietnam, he married Ms. Thuy Le, Vietnamese, 35 years old,
directly taking care of a 1-year-old pet and her 45 year-old blind sister, whose property
income of 2 million per month. After being married, she decided to terminate her
employment and became a housewife. On the termination she received VND 200 million,
being the settlement of her salary for January 2020. She did not have any income from 1
February 2020 onwards. On their marriage, Ms. Thuy agreed with Mr. James that he
would claim all dependant reliefs/deductions available to them according to the
regulations.
- Besides, Mr. James was also responsible for his adopted daughter, 25 years old,
graduated but still unemployed, and his parents (65 & 70 years old), no pension. In 2020,
he donated 500 million to a qualified centre which cares for handicapped children.
Notes:
1. You should attribute all the deductions to his employment.
2. Make all calculations in VND millions, rounded to two decimal.
PIT Case No.4
Mr. Huy Nguyen, recently resident in Vietnam, 35 years old.
From 1 June 2021, he was employed in Vietnam. Gross remuneration of his
employment with as follows:
- Monthly salary: USD 20,000
- Fixed bonus: USD 50,000 for 12-months employment
- Variable bonus: up to USD200,000, depending on Huy’s performance, to be
determined and paid in 2022.
- Work outfit: 10 million VND by cash
- Car rental to transport from home to work and return: 10 million VND per month
- Medical insurance fee: VND 40 million (written on labor contract)
He raised two children as qualified as dependents. Qualified donation is 20 million
(assumed in one month)
Besides, Mr. Huy received income from CV’s share investment: 100 million and he
sold 2,000 shares of PM company at the price of VND35,000 per share, which were
purchased at VND15,000 per share in the past.
Calculate PIT liability?
Exchange rate = 1 USD = 23.500 VND