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    Profits Tax Computation Illustration 2023S - Suggested Answers Ver2

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    何健珩
    McMickey's profits tax computation for the year 2019/20 shows a net assessable profit of $77,246 after adding back non-deductible expenses like depreciation and donations to the net book loss of $13,810, and subtracting exempted income and allowable deductions. After setting off an accumulated tax loss of $24,000, the net adjusted assessable profit was $53,246, resulting in a profits tax payable of $4,392 at the 8.25% tax rate after truncating the amount.

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    Profits Tax Computation Illustration 2023S - Suggested Answers Ver2

    Uploaded by

    何健珩
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    McMickey's profits tax computation for the year 2019/20 shows a net assessable profit of $77,246 after adding back non-deductible expenses like depreciation and donations to the net book loss of $13,810, and subtracting exempted income and allowable deductions. After setting off an accumulated tax loss of $24,000, the net adjusted assessable profit was $53,246, resulting in a profits tax payable of $4,392 at the 8.25% tax rate after truncating the amount.

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    McMickey's profits tax computation for the year 2019/20 shows a net assessable profit of $77,246 after adding back non-deductible expenses like depreciation and donations to the net book loss of $13,810, and subtracting exempted income and allowable deductions. After setting off an accumulated tax loss of $24,000, the net adjusted assessable profit was $53,246, resulting in a profits tax payable of $4,392 at the 8.25% tax rate after truncating the amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    2 views2 pages

    Profits Tax Computation Illustration 2023S - Suggested Answers Ver2

    Uploaded by

    何健珩
    McMickey's profits tax computation for the year 2019/20 shows a net assessable profit of $77,246 after adding back non-deductible expenses like depreciation and donations to the net book loss of $13,810, and subtracting exempted income and allowable deductions. After setting off an accumulated tax loss of $24,000, the net adjusted assessable profit was $53,246, resulting in a profits tax payable of $4,392 at the 8.25% tax rate after truncating the amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Profits Tax Computation Illustration

    McMickey
    Profits Tax Computation
    Year of Assessment 2019/20
    Basis Period: 1 April 2019 to 31 March 2020

    Net loss per book - 13,810


    Add:
    Book depreciation 25,000
    Donations 50,000
    Total annual contribution to MPF 123,500
    Provision for special contribution to non-approved retirement scheme 55,000
    Interest for money borrowed from an overseas associate company to 7,000
    finance the procurement of production machine
    Foreign tax paid 2,000
    Legal fee for collecting staff loan 1,400
    Legal fee paid for initial lease of new office 2,000
    Traffic fines 500
    266,400
    252,590

    Less:
    Non-taxable interest income $(5,500 + 3,000) 8,500
    Dividend income 8,500
    Allowable deductible amount re: MPF annual contribution under 61,750
    s.17(1)(i)
    Gains from disposal of fixed assets 50,000
    128,750
    123,840
    Less:
    Tax depreciation allowances agreed with the IRD 5,000
    118,840
    Less:
    Approved charitable donations (subject to 35% limitation) 41,594
    Net assessable profit for the year 2019/20 77,246
    Less:
    Accumulated tax loss b/fwd. 24,000
    Net adjusted assessable profit after loss set-off 53,246

    Tax payable at 8.25% (two-tiered tax rate) 4,392

    Note: the tax liability should be truncated from $4,392.795 to $4,392

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