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1. NIV Co, a Vietnamese company, rented an office for its operations from 1 April 2017 and paid a deposit of VND 792 million, equivalent to two monthly rental fees, inclusive of 10% value added tax (VAT). Rent is payable two months in advance. What is the amount of deductible rental expense which NIV Co can claim for corporate income tax (CIT) purposes in the year ended 31 October 2017?
A VND5,040 million
B VND2,520 million
C VND3,240 million
D VND2,772 million
2. When would they determine of VAT/CIT for goods?
A. Transfer of ownership
B. Money collection
C. Invoice issuance
D. Others
3. In 2017, DFC Co, a Vietnamese company, sold goods to SBY Co, another Vietnamese company, for a total contract value of VND4,840 million, inclusive of 10% value added tax (VAT). According to the contract, SBY Co is required to make payment within one month of the invoice date or pay interest of 1% of the contract value per month, for each month of delay. SBY Co paid the invoice four months after DFC Co issued it on 31 May 2017. What is the amount of total output value added tax (VAT) (in VND millions, rounded to one decimal) DFC Co is required to declare in 2017 as a result of the above transactions?
A VND440·0 million
B VND459·4 million
C VND454·5 million
D VND484·0 million
4. NEI Co, a foreign contractor, entered into a contract with PVN, a Vietnamese company,
to supply services in relation to oil exploration. NEI Co wants to apply the deduction
method for the declaration of value added tax (VAT) in Vietnam. In November 2014
when the tax code application was still in progress, NEI Co incurred input VAT of
USD15,000 for its operations in Vietnam. Also during that time, PVN made a progress
payment to NEI Co of USD200,000 (net of VAT at 10%) for the services. In December
2014 when the tax code was available, NEI Co incurred a further USD28,000 input VAT
for its operations in Vietnam. What is the amount of NEI Co’s deductible input value added tax (VAT) in 2014?
A. USD63,000
B. USD28,000
C. USD35,000
D. USD15,000
5. What are fully deductible CIT purpose?
i. Life insurance premium
ii. Golf membership and fees
iii. Incentives for initiatives, improvement without basis ( no internal regulations, no assessment council)
iv. Special bonus in period as per the company financial policy
v. Uniform without invoice, paid by cash directly to employee: 8,500,000 VND per year per person
A. All are deductible items
B. (i) and (iv) and (v)
C. (i) and (iv)
D. (i) and (ii) and (iv)
6. Tax rate applied to non-tax residents?
A. Progressive tax rates based on income levels
B. 10% tax rate
C. 20% tax rate for employment income
D. 2% of the sales proceeds
7. Current standard CIT rate is?
A. 27% (applicable from 1 January 2014)
B. 22% (applicable from 1 January 2015)
C. 20% (applicable from 1 January 2016)
D. 23% (applicable from 1 Jannuary 2014)
8. Ms Dung Nguyen is a Vietnamese citizen with three registered dependants. During 2017, she received a gross monthly salary of VND96 million, plus a bonus equal to two months’ salary in April 2017, relating to her work performance in 2016. Her employer also paid rent for a car for her to travel from home to work and vice versa at an annual cost of VND240 million. Dung is responsible for her own social, health and unemployment insurance.
What is Ms Dung Nguyen’s annual personal income tax (PIT) liability (in VND millions – to be rounded only in the final PIT calculations) in the year 2017?
A VND320 million
B VND387 million
C VND303 million
D VND236 million
9. On 1 September 2016, Mr Mohammad Taqi, a Singaporean citizen, commenced a secondment in the Vietnamese representative office of AFC Co, a company headquartered in Singapore. He received gross employment income of USD10,000 per month from AFC Co relating to his secondment. He resided in Vietnam from 1 September 2016 until his employment was terminated on 15 February 2017 by AFC Co, and he left Vietnam on the same date. He has no dependants. What is the amount (in VND million, rounded to one decimal) of Mr Mohammad Taqi’s personal income tax (PIT) liability for the first tax year in Vietnam in respect of his secondment (assuming he was not subject to social, health and unemployment insurance in Vietnam)?
A VND182·4 million
B VND250·8 million
C VND367·4 million
D VND240·9 million
10. XAL Co is a foreign airline which has an office in Vietnam to sell airfares. In the fourth quarter of 2017, XAL Co earned gross revenue, i.e. before the deduction of any charges or refunds, of USD250,000, based on receipts and records. Of this amount, USD200,000 was for passenger transportation, and the remaining amount related to cargo transportation. Airport charges of USD5,000 were collected from these fares on behalf of the domestic airports. XAL Co also paid refunds of USD7,000 to passengers who returned their fares during the quarter. What is the total amount of taxable income (in USD) which XAL Co should declare for the corporate income tax (CIT) portion of the foreign contractor tax (FCT) in the fourth quarter of 2017?
A USD188,000
B USD238,000
C USD245,000
D USD193,000
11. FCT rate for transfer of securities?
A. 5% CIT, 3% VAT
B. 2% CIT
C. 0.1% CIT
D. 1% CIT
12. Which is (are) the requirement(s) for PE conditions?
A. A production or business establishment through which a foreign company carries out part or the whole of business activities in Vietnam and earn income
B. A production or business establishment through which a foreign company carries out
part of business activities in Vietnam and earn income
C. A production or business establishment through which a foreign company carries out
the whole of business activities in Vietnam and earn income
D. A production or business establishment through which a foreign company carries out
part or the whole of business activities in Vietnam and have profit
13. TCD Co, an Australian company, signed a contract with HMC Co, a Vietnamese company, for TCD Co to provide consultancy skills training for HMC Co’s staff in 2017. The value of the training agreement was USD100,000, gross of corporate income tax (CIT) and net of the value added tax (VAT) portion of foreign contractor tax (FCT). The contract value was made up of online courses (20%), whilst the remaining 80% was attributable to training courses which took place in Vietnam. HMC Co settled the contract value in full in 2017. What is the amount (in USD), net of foreign contractor tax (FCT), TCD Co can receive from HMC Co in respect of the above training agreement during the year 2017?
A USD95,000
B USD94,737
C USD98,947
D USD96,000
14. CLT Co is a Vietnamese company employing 1,200 employees in 2017. The company has a policy to provide uniforms to employees in both cash and in kind. In 2017, the total uniform expenses paid by CLT Co was VND12,800 million, of which VND8,000 million was paid in cash to employees. 40% of the expenses in kind are not supported by proper documents. How much of CLT Co’s uniform expenses are non-deductible for corporate income tax (CIT) purposes in 2017?
A VND8,880 million
B VND3,920 million
C VND9,920 million
D VND1,920 million
15. In 2014, SPTF Co incurred losses of VND10 billion from incentive activities which were
subject to a tax rate of 10%, made gains from the transferring of real estate of VND3
billion and had other income of VND8 billion. What is the minimum tax liability of SPTF Co in 2014?
A. VND2,420 million
B. VND220 million
C. VND660 million
D. VND0 million
ANSWER:
1.Answer: B
Explain: VND2,520 million (792/(1 + 10%)/2*7 months)
The monthly rental expenses net of value added tax (VAT) would be 792/(1 + 10%)/2 months = 360 million per month. Total rent period in the year would be seven months (not nine months).
Chi phí thuê ròng VAT hàng tháng sẽ là 792/(1 + 10%)/2 tháng = 360 triệu một tháng. Tổng thời gian thuê trong năm sẽ là 7 tháng ( không phải 9 tháng )
2. Answer: A- Thời điểm chuyển giao quyển sở hữu
3. Answer: A
Explain: VND440 million [4,840 /1·1*10%]. According to Example 13 of Circular 219/2013, the interest for deferred payment would not be subject to value added tax (VAT).
Theo ví dụ 13 thông tư 219/2013, tiền lãi cho thanh toán trả chậm sẽ không phải chịu thuế giá trị gia tăng (VAT)
4. Answer: B
Explain: Only the input VAT incurred when a tax code has been obtained is deductible –
point 3.b, Article 12 of Circular 103/2014.
Thuế GTGT đầu vào chỉ phát sinh khi mã số thuế đã được khấu trừ theo 3.b, điều 12 thông tư 103/2014
5. Answer: C - Phí bảo hiểm nhân thọ và phần thưởng đặc biệt trong kì theo chính sách tài chính của công ty
6. Answer: C - 20% thuế suất cho thu nhập từ tiền lương/ tiền công
7. Answer: C - 20% áp dụng từ 1/01/2016
8.Answer: C. VND303 million
Explain: [((96*14 months/12 months – 9) – (26*(8% + 1·5% + 1%))*35%) – 9·85]*12 months
303 triệu [((96*14 tháng/12 tháng– 9) – (26*(8% + 1·5% + 1%))*35%) – 9·85]*12 tháng
9. Answer: B
Explain: VND250·8 million (USD10,000*22,800*20%*5·5 months) = 250·8 million
Mr Mohammad Taqi spent only 5·5 months in Vietnam for the first tax year (12 months from first arrival) and therefore was non-resident – accordingly he would be subject to 20% flat rate on the Vietnam-sourced income (i.e. income from secondment).
VND250·8 triệu (USD10,000*22,800*20%*5·5 months) = 250·8 million
Ông Mohammad Taqi chỉ dành 5.5 tháng tại Việt Nam cho năm đầu tiên chịu thuế ( 12 tháng kể từ khi đến ) và do vậy ông Tagi không phải đối tượng cư trú và phải chịu mức thuế suất 20% cho thu nhập có nguồn gốc từ Việt Nam.
10. Answer: USD238,000 (250,000 – 5,000 – 7,000)
Explain: According to Example 20 of Circular 103/2014, the full revenue would be taxable, after deducting airport charges and refunds, collected on behalf of the airport.
Theo ví dụ 20 thông tư 103/2014, toàn bộ doanh thu sẽ phải chịu thuế, sau khi trừ phí sân bay và hoàn tiền, được thu thay sân bay.
11. Answer: C
12.Answer: A
Explain: Cơ sở sản xuất hoặc kinh doanh thông qua đó các doanh nghiệp nước ngoài thực hiện tất cả hoặc một phần các hoạt động sản xuất / kinh doanh tại Việt Nam và tạo ra thu nhập.
13. Answer :A
Explain: USD95,000 [100,000 – (100,000*5%)]
The training fee (both online courses and courses organised in Vietnam) would be subject to foreign contractor tax (FCT) as services, corporate income tax (CIT) rate 5%, as can be interpreted from Example 8 of Circular 103/2014.
Phí đào tạo ( bao gồm cả khóa học online và khóa học tổ chức tại Việt Nam) sẽ phải chịu thuế thu nhập nhà thầu nước ngoài ( FCT) là dịch vụ, thuế thu nhập doanh nghiệp ( CIT) 5% theo ví dụ 8 thông tư 103/2014
14. Answer:B
Explain: VND3,920 million ((8,000 – (1,200 persons * 5 million/person)) + ((12,800 – 8,000)*40%))
According to Article 6.2.6 of Circular 78/2014, as amended by Circular 96/2015, uniform expenses in cash can be deductible up to VND5 million/person/year, while uniform expenses in kind can be deductible in full subject to proper documents.
Theo Điều 6.2.6 của Thông tư 78/2014, được sửa đổi bởi Thông tư 96/2015, chi phí đồng phục bằng tiền mặt có thể được khấu trừ lên tới 5 triệu đồng / người / năm, trong khi chi phí đồng phục bằng hiện vật có thể được khấu trừ toàn bộ phải tuân theo các tài liệu thích hợp.
15. Answer: C
Explain: VND660 million (3 billion * 22%) The net losses from incentives and other income of VND2 billion cannot be offset with the gains from real estate.
Các khoản lỗ ròng từ ưu đãi và các khoản thu nhập 2 tỷ đồng khác không thể được bù đắp bằng lợi nhuận từ bất động sản.
Author: Khanh Linh