Excercise 1:

Korea has a tax rate of 0% on the first 36 million won of taxable income, then the
tax rate increases by 10% on the next 36 million won adding.

Two people in Korea have the taxable income per year as below

Year Person A (million) Person B (million)

1 60 80

2 60 80

3 60 60

4 60 30

5 60 50

Total 300 300

a) Calculate ATR of each person and make comments?

b) If the rate is total progressive tax, calculate the amount of tax payment of
two people

Excercise 2:
Person A has monthly taxable income of 16 million peso. MTR is 20% if the
income is between over 15 and 25 milion peso. MTR is 30% if the income is over
25 million peso. The current ATR of A is 7.5%.
a) Calculate the amount of tax payment?
b) Calculate the tax paid if the taxable income increases to 26 million peso.
c) If the rate is total progressive tax, calculate the amount of tax payment in each
case of income?
Excercise 3:
Person A has the taxable income as below
Year 1st: 21,000$
Year 2nd: 15,000$
Year 3rd: 18,000$
PIT hax a partially progressive tarrif: MTR is 10% if the taxable income is up to $
10,000 per year. If the taxable income increases by 5,000$, the tax rate increases
by 5%.
a) Calculate the amount of tax payment?
b) Calculate the tax paid if the taxable income increases to 26,000 $ for each year
c) If the tarrif is total progressive tax, calculate the amount of tax payment in each
case of income?

d) If person A is provided 2,000$ exemption per family member and there are 3
members in A’s family, calculate ATR for 3 years?

Excercise 4:
The demand for product A is: P = 10$;

and the supply of A is Q = 80 + 20p;

If the government taxes 2$ on the consumption of each product. Calculate the

consumer tax burden and producer tax burden? Calculate the tax revenue?

Exercise 4:

The business situation of a company in the taxation period is as follows: (unit:

million dong)

1. The total revenue: 5,000

2. The expenses:

- Cost of wages and salaries: 850;

- Buying life insuarance for employees: 50

- Expenses for construction of gratitude houses under the program of the

Ministry of Labor, War Invalids and Social Affairs: 300

- Cost of costume in kind for the employees: 300 (there are 50 employees)

- Interest payments on loans: (borrowing 500 million from a commercial bank at

the interest rate of 16% per year; borrowing 300 million from employees at the
interest rate of 18% per year)

- Fines for violations of the law on labor use: 10

- Expenditures for waste water treatment: 100

- The VAT-exclusive price of raw materials purchased: 900.

- Depreciation of fixed assets: 50.

- Creditable input VAT amount: 5

- The VAT-inclusive price of outside services: 88

- License fee: 5

- Tax on Non-agricultural land use: 20

3. Other Income from transfer of assets: 30

a) Calculate the payable VAT amount with the tax rate of 10%?
b) Calculate the EIT, assuming that: the tax rate of EIT is 20%, basic interest
rate of the central bank is 10%, The company has contributed sufficient
capital. Life insurance is not included in the labor contract

Exercise 5:

The business situation of a company in the taxation period is as follows: (unit:

million dong)
1. The total VAT-exclusive turnover: 4,000 (in which the turnover of goods subject
to excise tax is 1,500)

2. The expenditures:

- Cost of wages and salaries: 850

- Depreciation of fixed assets: 70.

- Creditable input VAT amount: 8

- The VAT-inclusive price of raw materials purchased: 1,100.

- Expense for advertisement, marketing, sales promotion and brokerage

commissions: 200.

- Cost of costume in money for the employees: 250 (there are 40 employees)

- Interest payments on bank loans: 50

- Fines for overdue debt: 5.

- Other deductible taxes: 20

3. Other incomes: 50

a) Calculate the payable VAT amount with the tax rate of 10%? Calculate the
excise tax amount with the tax rate of 50%?

b) Calculate the EIT, assuming that: the tax rate of EIT is 20%? Life insurance is
not included in the labor contract