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Group 4 Report
Group 4 Report
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A. Group question 1:
Company Dragon in the tax period sale products
Question:
a. What information need to be clarified when determine output VAT
b. Give detailed example
Answer:
a. When determine output VAT, Dragon Company need to be clarified:
Their sale products are belonged to taxable goods and services.
Their sale products have tax base and tax rate are.
When seling goods and services, Dragon Company must include the output tax
on the before-VAT price ( price exclusive of VAT or total payment exclusive of
VAT) and this is shown on invoice.
Clarify the total output VAT amount state for Dragon’s sale product in the tax
period with the following formula:
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VAT rate is 10%.
Required: Define the output tax amount.
Soulution
Output VAT:
Sale of 3,000 units: 3,000 x 55,000 x 10% = VND 16,500,000
Sale of 1,000 units: 94,000,000 x 10% = VND 9,400,000
Export 500 units: 300 x 100,000 x 0% = VND 0
Total output VAT: VND 16,500,000 + VND 9,400,000 + VND 0 = VND 25,900,000
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B. Group question 2:
Company Dragon in the tax period purchased materials for production.
Question:
a. What information need to be clarified when determine deductible input VAT
b. Give detailed example
Answer:
a. When determine deductible input VAT, Dragon Company need to be clarified:
Input VAT of materials used for production of goods or services subject to VAT
(not belong to exempt items).
The current tax rate of that kind of materials.
The number of materials that Dragon purchased in tax period.
Clarify the total VAT amount state on the value-added invoice for Dragon’s
purchased materials for production with the following formula:
If Dragon’s purchased material is of the kinds for which special-type invoices written
with VAT – inclusive payment prices are used, we can base themselves on these VAT
inclusive price to calculate the deductible input tax amount.
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Total input written on added value invoices legible VND 50,000,000 in which
for C is VND 20,000,000, for D is VND 10,000,000
Dragon company can’t separate input tax for each item.
Turnover of selling product C in the period is VND 900,000,000, product D is
VND 100,000,000.
Required: Define the deductible input tax amount
Solution
The deductible input VAT amount is:
9 00,000,000
20,000,000+(50,000,000-20,000,000-10,000,000) × (9 00,000,000+10 0,000,000) = VND
38,000,000
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C. Group question 3:
Company Vinataba in the tax period sale tobacco products:
Question:
a. What information need to be clarified when calculate excise duty payable
b. Give detailed example
Answer:
a. Because tobacco is one of 11 items or goods of items subject to excise duty in
Vietnam, so company need to provide the information to clarified when
calculate excise duty payable:
The goods produced domestically or imported, if the goods imported provide
imported tax
The price exclusive of VAT of goods
The amount of goods exported
The environmental tax (if any)
The tax rates
Clarify excise duty payable on Vinataba in the tax period sale tobacco products with
the following formula:
when
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Example
We have the data of the tax month in N in HABECO company engaged in beer
production as following:
Exportation of bottled beer: 250,000 bottles with FOB price of VND 25,000 per
bottle
Sale of bottled beer in domestic market: 500,000 bottles at price exclusive of
VAT of VND 21,000
Required: Calculate of excise duty payable by HABECO. Given that the excise duty
rate applicable for beer is 50%
Solution
Exportation of bottled beer is non-excisable transaction
Excise duty payable on the sale of bottled beer in the domestic market is
VND 21 ,000
500,000 bottled beer x 1+5 0 %
x 50%= VND 3,500,000,000
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D. Group question 4
Question:
a. Group giving example about import duties calculation methods
b. Solving example of group 4
Answer:
a. Group giving example about import duties calculation methods
Example
December 2018, ABC Company has the information during the month below:
Import 2 unit of product A with FOB price is 29,300 USD/unit.
Import 10 units of product B with CFR price is 12,210 USD/unit.
Import 5 units of product C with CIF price is 19,300 USD/unit.
Export 3 units of product C with CIF price is 10,020 USD/unit.
Export 4 units of product B with CFR price is 19,450 USD/unit.
Export 12 units of product A with FOB price is 18,120 USD/unit.
Suppose that these import and export activities have same insurance fee is 1,500
USD, and freight fee is 2,950 USD.
Know that:
Exchange rate: 1USD = 23,415 VND
Import rate for A is 10%, B is 11%, and C is 12%
Export rate for A is 4%, B is 5%, and C is 6%
Required: Calculate the custom duty of ABC Company in Custom office.
Solution
Import 1 unit of product A with FOB price is 29,300 USD/unit.
Import duty = (2 x $29,300 + $1,500 + $2,950) x 23,415 x 10%=147,631,575VND
Import 10 units of product B with CFR price is 12,210 USD/unit.
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Import duty = (10x $12,210 + $1,500) x 23,415 x 11%= 318,350,340VND
Import 5 units of product C with CIF price is 19,300 USD/unit.
Import duty = (5 x $19,300 x 23,415) x 12%= 271,145,700 VND
Export 3 units of product C with CIF price is 10,020 USD/unit.
Export duty = (3 x $10,020 + $1,500 + $2950) x 23,415 x 6%= 48,398,805 VND
Export 4 units of product B with CFR price is 19,450 USD/unit.
Export duty = (4 x $19,450 + $2950) x 23,415 x 5%=94,538,062.5 VND
Export 12 units of product A with FOB price is 18,120 USD/unit.
Export duty = (5 x $18,120) x 23,415 x 4%= 84,855,960VND
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Given that:
Import tax A 30%, import B 15%, export C 5%
Excise tax rate A: 10%
VAT rate of A, B, C: 10%
Enterprises pay VAT under PPKT. The VAT of other outsourced service costs is
eligible for a deduction of VND 100 million. The purchase transactions of
businesses are now payment through banks
Tax rate: 1 USD = 23.000 VND
Answer:
(Unit: Million VND)
Tax paid for Customs Office:
o Import tax:
Product A: (50,000 - 1,500) x 2.9 x 30% = 42,195
Product B: (3,000 + 100) x 9 x 0.023 x 15% =96.255
o Export tax:
Product C: 4,000 x (5.4 + 0.2) x 5% = 1120
o Excise duty:
Product A: (48,500 x 2.9 + 42,195) x 10% = 18284.5
o VAT on imports:
Product A: (48,500 x 2.9 + 42,195+18284.5) x 10% = 20112.95
Product B: (3,100 x 9 x 0.023 +96.255) x 10% = 73.7955
Tax paid for Tax Office:
o Excise duty:
48500 x 6.9
Product A: 1+ 10 % x 10% = 30422.72727
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Product A: (48,500 x 6.9 +12138.22727) x 10% = 34678.82273
Product B: 1,500 x 0.1 x 10% = 15
Product C: 4,000 x (5.4 x 0.5) x 0% = 0
Total output VAT: 34678.82273 + 15 + 0 = 34693.82273
o Input VAT:
Transportation cost of Product C: 4,000 x 0.2 x 10% = 80
VAT of other outsourced service costs: 100
Input VAT: 20112.95 + 73.7955=20186.7455
Total input VAT: 80 + 100 +20186.7455= 20366.7455
VAT payable: 34693.82273- 20366.7455 = 14327.07723
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E. Group question 5
Question:
a. Group giving example to calculate CIT payable
b. Solving example of group 4
Answer:
a. Group giving example to calculate CIT payable
Example
We have data on expenses for the tax year N of BIDV are as follows:
Base turnover: VND 60,000 million;
Total expenses: VND 35,000 million of which:
o Asset rent paid in advance for 5 years of renting: VND 90 million
o Material expenses with legitimate invoice VND 10,000 million. This
expense is compliant with the consumed norm defined by the company
o Salaries expense with illegitimate voucher: VND 60 million.
o Donation for victims of a storm with valid voucher: VND 100 million
o Marketing, advertising, reception and brokerage commission expenses
with legitimate vouchers: VND 2,000 million
o Deductible input VAT: VND 200 million
o The rest expenses except for the above expenses are deductible
Other incomes
o Income received from the provision of technical service for agriculture
production: VND 400 million.
Last year’s loss: 150 million
Required: Calculate the CIT amount payable by this company for the tax year,
given that: CIT rate is 20%
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Solution
1) Revenue: 500,000,000 VND
2) Total deductible expenses:
Cost of capital cost: 300,000,000 VND
Cost of sales: 150,000,000 VND
Cost of management: 100,000,000 VND
Financial expenses (interest expense): 6,000,000 VND
Other cost: 30,000,000 VND
Total expenses:
300,000,000 VND + 150,000,000 VND + 100,000,000 VND + 6,000,000 VND +
30,000,000 VND=586,000,000 VND
3) Others taxable incomes:
Fixed asset cost: 200,000,000 VND
Income from financial activities (interest income): 5,000,000 VND
Total others taxable incomes
200,000,000 VND + 5,000,000 VND = 205,000,000 VND
4) Assessable income
500,000,000 VND – 586,000,000 VND + 205,000,000 VND = 119,000,000 VND
5) Losses carried forward: 60,000,000 VND
6) Base income
119,000,000 VND – 60,000,000 VND = 59,000,000 VND
7) CIT amount payable:
59,000,000 VND * 20% =11,800,000 VND
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Data for 2019: loss of VND 50,000,000
Year 2020
o Revenue from sales activities, services: 500,000,000 VND
o Expenses:
- Cost of capital cost: 200,000,000 VND
- Cost of sales: 200,000,000 VND
- Cost of management: 90,000,000 VND
- Financial expenses (interest expense): 5,000,000 VND
- Other cost: 20,000,000 VND
o Other income
- Fixed asset cost: 100,000,000 VND
- Income from financial activities (interest income): 6,000,000
VND
Requirement: Calculate CIF year 2017, given that: the corporate income tax
20%
Solution
1) Revenue: 500,000,000 VND
2) Total expenses:
Cost of capital cost: 200,000,000 VND
Cost of sales: 200,000,000 VND
Cost of management: 90,000,000 VND
Financial expenses (interest expense): 5,000,000 VND
Other cost: 20,000,000 VND
Total expenses:
200,000,000 VND + 200,000,000 VND + 90,000,000 VND + 5,000,000 VND +
20,000,000 VND = 515,000,000 VND
3) Others taxable incomes:
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Fixed asset cost: 100,000,000 VND
Income from financial activities (interest income): 6,000,000 VND
Total others taxable incomes
100,000,000 VND + 6,000,000 VND = 106,000,000 VND
4) Assessable income
500,000,000 VND - 515,000,000 VND + 106,000,000 VND = 91,000,000 VND
5) Losses carried forward: 50,000,000 VND
6) Base income:
91,000,000 VND - 50,000,000 VND = 41,000,000 VND
7) CIT amount payable:
41,000,000 VND x 20% = 8,200,000 VND
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