Golden Bell Challenge: Acca F6 Taxation - June 2019

ACCA
F6 TAXATION – JUNE 2019
GOLDEN BELL
CHALLENGE
GAME RULE
There are a total of four (04) rounds of challenges that you are required to
get over:
Round Qualification Time for each

question
1 >=70% 30s-45s
2 >=60% 60s-90s
3 Knock-out 120s
4 Final N/A
In case you do not qualify, do not worry. You can still rejoin the
competition in either of the following scenarios:
Scenario 1: You continue to answer questions from next round. If this

time you qualify, then you can get back to the competition.
Scenario 2: At least 10% of the class still remains in the competition after
Round 2
GAME RULE (con’t)
Feel free to use your circulars, laws, decrees or lecture slides throughout
the game.
Fell free to use mobile phones or laptops or calculators.
The game will be on a self-assessment basis (just like tax declaration &
payment). That means, you self-assess whether you qualify based on
the answers we provide.
Any concerns or disputes in connection with answers, please come to

me.
Your efforts pay off - Special gifts are waiting for you if you can reach end
of the road.
NOW…
GOOD LUCK!!!
ROUND 1 –
ELEMENTARY SCHOOL
Question 1.1
Foreign contractor tax (or withholding tax) is a tax type.
(1) Correct
(2) Incorrect
Briefly explain why (You must attempt this to achieve the full mark)
Question 1.2
The current penalty rate for tax under-declaration is as follows:
(a) 0.05% (up to 90 days)/0.07% (from 91th day onwards) per day of late
tax payment
(b) 0.03% per day of late tax payment
(c) Same as (a), plus 20% on under-declared amount (subject to
conditions) or 1-3 times of under-declared amount (subject to conditions)
(d) Same as (b), plus 20% on under-declared amount (subject to
Question 1.3
Which of the following taxes are included in the VAT-taxable price:
(a) Special Sales Tax

(b) Import Tax
(c) Environmental Tax
(d) All of the above
Question 1.4
Which of the below is NOT correct:
(a) Indirect tax: Taxpayer is not ultimate tax bearer while Direct Tax:
Taxpayer is ultimate tax bearer;
(b) Indirect tax and Direct Tax are the only method of categorizing tax
types under Vietnamese tax system;
(c) Indirect tax includes VAT, Special Sales Tax and Personal Income
Tax;
(d) Direct Tax includes Corporate Income Tax only.

Question 1.5
Fill in the blanks (other similar fill-in is accepted):
Transactions between parties - qualified as related parties in accordance with

current regulations - must be conducted on an ………….. basis. That means,
the ....... of the transactions must be in correspondence with acceptable ……..
pricing range.
Enterprises having related party transactions must declare and submit a disclosure
form to the tax authority together with its …. finalization return. Also, they are
required to prepare and maintain a transfer pricing documentation to evidence their
compliance with TP regulations on an annual basis.
Otherwise, the tax authority reserves the right to imposed ……. Pricing/profit for tax
adjustment purpose.
There are currently 5 acceptable methods for transfer pricing purpose, namely
CUP (comparable uncontrolled price), Profit-based methods (re-sale method,
Comparable Profit Margin (CPM) method, cost plus method) and Profit Split
Method (PSM). Of which, the widely used and accepted are CUP and … Method
(CUP must be tried first)
Question 1.6
Mr A first arrived and started his assignment in Vietnam as from 1 July

2017. Up to 31 December 2017, he stayed in Vietnam for 183 days.
What is his first tax year in Vietnam:
(a) July 2017 to June 2018

(b) July 2017 to December 2017
(c) January 2017 to December 2017
(d) Others (Please specify)
Question 1.7
Fill in the missing parts:

Question 1.8
In principle, Foreign contractor tax (or withholding tax) and Personal

Income Tax is imposed at the time when:
(a) There are clear signs that incomes will be generated (i.e. signing labor
contract, signing contract price, issuing monthly pay calculation, receiving
shares, etc.);
(b) Cash is paid out/ realized;
(c) Others (please specify)
Question 1.9
(a) PIT is declared/provisionally paid on monthly/quarterly basis (subject

to conditions) and finalized at year-end;
(b) VAT is declared/paid on monthly/quarterly basis (subject to conditions)

and finalized at year-end;
(c) FCT is declared on ad-hoc basis (or monthly basis if registered in

written to tax authority) and finalized at contract termination;
(d) CIT is not required to be declared (but provisionally paid on a quarterly

basis), but must be finalized at year-end. The provisionally paid amount
must not be less than 20% the finalized amount (otherwise, penalties will
apply)
Question 1.10:
Which of the below is NOT the difference between PIT calculation

approach of Tax Resident and Non-tax resident:
(a) PIT rate

(b) PIT taxable income
(c) PIT deductions
(d) None of the above
Note, you are requested to specify the difference (in written).

Foreign contractor A provides (a) training services carried out in Vietnam;
(b) grant a license for a Vietnamese company to use their patented
technology; and (c) provide goods under D-inco-term in Vietnam. The
value of the activities cannot be separated.
Question 1.11 - FCT rate applicable on whole contract value is:
(a) 5% VAT, 5% CIT

(b) 3% VAT, 2% CIT
(c) 10% CIT, 5% VAT
(d) 10% CIT, VAT exempted
(e) Others (please specify)
Question 1.12
Mr A receives housing benefits in cash with the amount being USD2,000

per month. How is the amount taxed?
(a) Not subject to PIT;

(b) Fully subject to PIT;
(c) Subject to PIT, but only at lower of 15% assessable income (including
housing benefit);
(d) Subject to PIT, but only at lower of 15% assessable income (excluding
housing benefit)
Question 1.13
Tax administration of Vietnam is regulated on a ……. basis. That means,

the tax-payer determines, declares and pays taxes to State Budget
themselves. If later, tax authorities come for audit and identify under-
declaration, tax …. and administrative ….. will be imposed.
Upon establishment, enterprises are granted with …. …. (same as

Business Registration Code) for declaring and paying all types of taxes.
When they wrongly declares, they may make ….. declaration before the
tax auditor comes.
After tax audit, if there is remaining dispute between taxpayer and tax
auditors, taxpayers can appeal in accordance with the Law on Appeal.
The Appeal must first be lodged to the ….. tax authority before escalating
to higher levels.
Foreign contractor A provides construction services (NOT including
providing materials).
Question 1.14 - FCT rate applicable is:
(a) 3% CIT, 2% VAT

(b) 5% VAT, 3% CIT
(c) 5% CIT, 5% VAT
(d) Others (please specify)
Foreign Contractor A signs contracts to purchase goods from Company
B (a VN entity)
Foreign Contractor A also signs contracts to sells the same goods to

Company C (another VN entity)
Under the contract with Company B, the goods will be delivered directly
from Company B to Company C.
Question 1.15: When A receives monies from C, any FCT exposure?
(1) Yes
(2) No
Explain your answer

Question 1.16:
FILL IN THE BLANKS (similar fill-in accepted):
VAT is an ….. tax imposed on goods and services …., …. and …. In

Vietnam (including those purchased from overseas)
B (a VN entity)
from Company B to Company C (another VN entity).
Company C will use such goods delivered by Company B (being

materials) to process to finished goods, then Company C will export the
finished goods to Foreign Contractor A (receiving processing service fee)
Question 1.17: Any FCT exposure?
(1) Yes
(2) No
Question 1.18:
VAT exemption – 0% VAT rate – Cases not required to declare and pay
VAT is similar in terms of:
(a) Same output rate;

(b) Output VAT not incurred;
(c) Corresponding input VAT are non-creditable;
(d) Corresponding input VAT are creditable
(e) Others (Please specify)
Foreign Contractor A sells goods (without any accompanied services) to
Company B – a Vietnamese entity under CIF inco-term.
After the ownership of the goods is transferred to B at Hai Phong port, A –

however – still reserves the right to fix the price of the goods to be sold
domestically.
Question 1.19: Any FCT exposure on the goods value which Company
B pays to A?
(1) Yes
(2) No
Explain your answer.

Question 1.20:
How many methods of VAT declaration?
(a) 1
(b) 2
(c) 3
(d) Others (Pls specify)
Name and briefly explain about them.


however – is still responsible for costs of distribution, advertising and
promotion.
Question 1.21:
Any FCT exposure on the goods value which Company B pays to A?
(1) Yes
(2) No

Question 1.22 - How many methods of FCT declaration and payment?
(1) 1
(2) 2
(3) 3
(4) Others
Name them and brief the calculation method (must be attempted)

Question 1.23:
Which of the followings are NOT subject to VAT:
(a) Technology transfer

(b) Loan interest from an individual to an organization
(c) Software & software services
(d) Transfer of land use right
(e) Goods sold from non-tariff-zone enterprise (EPE) to other EPE
(g) All
Question 1.24:
How may types of main CIT deductible expense (s) when calculating
FCT: :
A1
B2
C3
D4
What are they? (must be attempted)

Question 1.25:
That the contract price is quoted NET of Vietnamese taxes means:
(a) The foreign contractor is responsible for all the taxes in their tax
jurisdiction;
(b) The foreign contractor is responsible for all the taxes in their tax
jurisdiction and in Vietnam;
(c) The foreign contractor is not responsible for all the taxes in their tax
jurisdiction;
(d) The foreign contractor is responsible for all the taxes in their tax
jurisdiction but not responsible for those incurred in Vietnam;
Question 1.26:
VAT taxing time of provision of goods and services?
(a) Transfer of goods ownership/ completion of services

(b) Transfer of goods ownership/ receipt of monies
(c) Transfer of goods ownership/ receipt of monies or completion of
services, whichever is later
(d) Transfer of goods ownership/ receipt of monies or completion of
services, whichever is earlier
Question 1.27 - The standard CIT rate applicable for FY2018 is:
 (a) 22%
 (b) 20%
 (c) 17%
 (d) Others (Please specify)
Question 1.28:
Cases of VAT refund?
(a) Export (accumulated from VND300 mil)

(b) Investment stage (accumulated from VND300 mil)
(c) ODA project unit
Question 1.29
Write down in your paper the missing steps (similar attempts accepted)
PIT calculation - Net salary (with housing allowance)
1. Determine Net Income excluding housing allowance: Net Salary + Taxable

Allowances
2. Determine Net income after Deductions (family relief, compulsory insurances, etc)
3. GROSS UP (2).
4. Add back Deductions to (2) to determine Total Taxable income before Housing
Allowance
5. Identify the lower of 15% total taxable income and actual housing allowance
6. Determine Net Income including housing allowance: Net Salary + Taxable
Allowances – Deduction (family relief, insurance, donation) + Taxable housing allowance
(identified under Step 5)
7. GROSS UP (6)
8. Compute monthly PIT and yearly PIT liability.
Question 1.30:
Timing for recognizing taxable incomes from services provision/
sale of goods is:
(a) Invoice issuance or services completed/ goods ownership
transfer
(b) Services completed/ Goods ownership transfer
(c) Others (Please specify)
Foreign contractor A provides goods being a production equipment with
accompanied services (i.e. installation, commissioning, etc.) in Vietnam.
The value of goods and services cannot be separated.
(a) 3% CIT, 2% VAT

(b) 3% VAT, 2% CIT
(c) 2% CIT (3% VAT may apply)
(d) 2% CIT, 3% VAT (3% VAT may not be applied in certain cases)
Question 1.32:
When output VAT is less than input VAT, enterprises will not be
allowed to recover the accumulated un-creditted input VAT and will
have to treat the input VAT as their business cost?
(a) Correct
(b) Not correct
Briefly explain your answer.

Question 1.33:
Company A is granted incentive for manufacturing in industrial park.
In FY2015, Company A incurred the following incomes:
- Incomes from its manufacture activity in industrial park (in Ha
Nam)
- Incomes from its manufacture activity in Hanoi
- Incomes from its trading activity in Ho Chi Minh city
All of the incomes above are qualified as incentive incomes.
The statement above is:
(a) Correct
(b) Incorrect
Question 1.34:
Company A – established and operated under the laws of Singapore
– is contemplating to sell 20% of its shares in Company B – a
Vietnamese company – to Company C – established and operated
under the laws of US. Who will declare the Capital Assignment Tax
in accordance with the law?
 (a) Company A
 (b) Company B
 (c) Company C
 (b) Company A and C
Question 1.35
In 2018, Mr A – a Japanese director – stays in Vietnam for 180 days.

However, he has obtained temporary residence card from VN Police
Department. He also has a house lease contract at Keangnam with the
term being 24 months from January 2018 to December 2018.
In 2018, pursuant to the Law of Japan, if requested, he can obtain a 2018

tax residence certificate in Japan
In 2018, what is the residency status of Mr A for Vietnamese PIT

purpose?
(a) Tax resident

(b) Non-tax resident
(c) Tax resident (subject to conditions – to specify)
(d) Non-Tax resident (subject to conditions – to specify)
Question 1.36
Mr A invests VND1 billion to Company X. At the end of the year,

Company X pays Mr A VND10 million of dividend in share and VND20
million in cash.
This dividend is after-tax (i.e. Company X pays tax before distributing the
dividend).
How is the dividend received taxed?
(a) No PIT for both, given taxes are already settled before distribution;
(b) 5% PIT on both;
(c) 0.1% PIT on both;
(d) 5% PIT on VND20 million in cash only;
(e) 0.1% PIT on VND20 million in cash only;
(f) Others (Please specify)
Question 1.37 - In 2015, Company A donated
(1) monies in either cash or bank transfer to Bach Khoa university
as in the form of scholarships for best students; and
(2) Monies by bank transfer to a private fund formed by its Former
General Director to help poor people living in rural areas of
Vietnam.
Which of the above donations are deductible for CIT purpose:
(a) Both
(b) (1)
(c) (2)
(d) None
Question 1.38
Mr A signs a service contract to act as cabin translator for a Korean

company in Vietnam. He receives in total VND100 million for the work
during FY2018 (gross of PIT). He does not has a tax code in Vietnam.
Which of the below is correct PIT treatment?
(a) 10% withheld will be deducted against his total PIT payable in
FY2018 from all sources. His translation income will be considered as a
wage/salary income item for finalization purpose;
(b) 10% withheld. He will not be required to finalize his PIT;
(c) Same as (a), but the withheld rate is 20%;
(d) Same as (b), but the withheld rate is 20%;

Question 1.39
How are realized foreign exchange loss and gain (if any) be treated from
tax perspective in the below cases:
1. Incurred during construction period;

2. Incurred during operation period
Which of the below is correct:
(a) For 1: off-sheet monitored, net-off allocated to P&L after operation/

For 2: Financial Exp and Financial Income
(b) Financial Exp and Financial Income (for both periods)
Question 1.40: VAT treatment of the below?
Taxable Input VAT Invoicing

Price /
Output VAT
Goods used for promotion (in
line with Commerce Law)
Goods used for promotion
(NOT in line with Commerce
Law)
Goods used for internal
consumption (to continue to
be used in manufacture
process)
consumption (for internal
business purpose)
consumption (other
purposes)
Taxable Price / Output Input VAT Invoicing

VAT
Gifts to clients
Self-
constructed
Fixed asset for
VAT-able goods
manufacture
Discounted/
Rebated Price
Gifts by
Voucher
Question 1.42:
VAT treatment of the below?
Price /
Output
VAT
Cash compensation/
support/bonus/
financial income
Goods compensation
Cash support to provide
services
Repairs, advertising and
marketing, commercial
promotion, and other specific
services performed outside
Vietnam
Contribute capital by assets to

set up new company
Taxable Price / Input VAT Invoicing

Output VAT
Selling assets of non-business
organizations and individuals that are
not VAT payers
Transfer of investment project
Collection on behalf not related to
sales of goods/ provision of services
of the collector
Transfer of asset btw HQ & 100%

subsidiaries & btw 100% subsidiaries
with each other to serve VAT-able
goods manufacture
Transfer of asset btw dependent-

accounting units, upon merge, split,
conversion of business form
Input VAT Creditable

(Y or N)
Input VAT of damaged goods uncompensated by insurers
Input VAT of fixed assets for labor use (canteen, medical
facilities, WC, parking areas, etc.)
Input VAT of Housing cost for IP workers in accordance
with IP worker housing standards
Input VAT of Housing cost for expatriates signing labor
contracts with VN entity, paid by VN entity
Input VAT of Housing cost for expatriates assigned to
Vietnam under assignment letter with foreign entity, paid
by foreign entity
Input VAT for goods produced for ODA, NGO funding
project
Input VAT of below-10-seat cars
Question 1.45:
Business expansion is entitled to CIT incentive of the Original

Project.
(a) Absolutely correct
(b) Absolutely incorrect
(c) Partly correct
(d) Partly incorrect
Please explain why.

Question 1.46:
Company A is granted incentive being 2 years of exemption and 4
years of 50% reduction for investing in manufacture in industrial
park. Company A started operation in 2012.
In FY2011-FY2014, Company A incurred a loss being VND300 mil,
VND200 mil, VND200 mil and VND100 mil respectively. In FY2015,
Company A has a taxable profit being VND600 mil.
What is the final year of enjoying tax holiday of Company A?
Question 1.47:
The statute of limitation for tax collection and penalties in cases
where the tax authorities have identified tax evasion by the taxpayer
are:
(a) 10 years back from date of violation detect/ 5 years back from
date of penalty decision
(b) 5 years back from date of violation detect/ 2 years back from
(c) 10 years back from date of violation detect/ 2 years back from
(d) 5 years for both cases
Question 1.48:
Company B is subsidiary of Company A. Before Company B is established,
as authorized by Investors in written, Company A pays a number of
expenses on behalf of Company B (i.e. company set-up fee, etc.), proper
invoices are addressed to Company’s A name and tax code & payments are
made from Company A to suppliers.
Company B then settles all the cost to Company A by bank transfer.
Can Company B claim the input VAT associated with the invoices as its
creditable input VAT?
(a) Yes
(b) No
Question 1.49:
Briefly state the invoice issuance time for goods sale/ services
provision.
Question 1.50:
Which of the below is NOT required for a legitimate VAT invoice for buyer’s input credit:
(a) Invoice issued in accordance with the Law (having names of copies of an invoice,
ordinal numbers of invoices, Names of goods and services, units, quantities, unit
prices of goods and services; amount payable in numbers and in words, name of
printing agencies, etc.);
(b) Invoice’s Name, address, Tax Code issued to Buyer;
(c) Having buyer and seller’s signatures and seals (except for certain special cases)
and write the date on the invoice.
(d) Invoices must be written in Vietnamese
(e) “Red” invoices must be available for every purchases
Briefly explain your choice (must be attempted)

Question 1.51:
Company B applies VAT credit method. When it purchases a
services from Company A, it pays by T/T remittance to the
designated bank account of Company C (the account is not
registered with tax authority) as instructed by Company A in the
relevant contract.
Can Company B claim the input VAT?

(a) Yes
(b) No
Question 1.52:
Fill in the blank (similar attempts are accepted):
In principle, invoices are issued upon --- of services or goods.
For incorrect invoice, not yet issued to buyer: Cross the copies, issue new invoice
For incorrect invoice, issued to buyer but ---- declares taxes: Minutes on invoice
revoke + Issue new invoice
For incorrect invoice, issued to buyer and --- taxes:
- If the incorrectness does not impact the VAT payable: Make minutes on adjustment
- If the incorrectness impact the VAT payable: Makes minutes on adjustment + Issue
----- invoice
Question 1.53:
The timing for determination of tax payable from real estate transfer
is:
(a) Upon contract effect (in case the contract specifies that buyer
will declare and pay taxes on behalf of seller)
(b) Upon the real estate transfer is duly registered/acknowledged
by competent authorities;
(c) Upon the real estate transfer is duly acknowledged by
competent authorities (in case the contract specifies that buyer
will declare and pay taxes on behalf of seller);
(d) Upon the real estate transfer is duly registered/acknowledged
by competent authorities (in case the contract does not specify
that buyer will declare and pay taxes on behalf of seller);
Question 1.54:
Double tax avoidance are regulated under treaties signed between

countries. VN now has signed treaties with more than sixty countries.
There are two schemes to avoid double taxation, namely tax ---- (pay
first, then --- against similar tax imposed on --- income in home country)
& tax exemption (not paying, submitting a notification dossier on tax
exemption under treaty).
Double tax treaties shall prevail the domestic regulations and apply to
---- taxes (such as CIT, PIT) only. On a case by case basis, certain
incomes may enjoy favorable treatment under treaties (royalty, interest,
business incomes; individual incomes, income from share transfer or
real estate transfer, etc.). Every treaties has similar articles guiding on
such specific incomes.
Question 1.55:
Every provision types are not accepted for CIT purpose given its
uncertainty.
(a) Correct
(b) Not correct
Briefly explain your answer (must be attempted).

Question 1.56:
Science & Technology Fund (maximum 10% assessable income) must

be disbursed minimum --- % within ---- years. Otherwise, tax
recollection and interest on late payment will apply.
(a) 100% - 10 years

(b) 70% - 5 years
(c) 50% - 5 years
Question 1.57:
Company A has a machinery with current cost being VND1 billion.

Company A now upgrades the machine to increase its capacity, total
upgrade fee is VND0.2 billion. After such upgrade, the cost of the
machinery is now:
(a) 1 billion
(b) 1.2 billion
(c) 0.8 billion
Question 1.58:
When assets are disposed, monies collected are recorded as incomes

and net book value (remaining value) is recorded as expenses.
When under-10-seat cars are disposed, however, the net book value is
only capped at VND1.6 billion*years of use.
(a) Correct
(b) Not correct
Please explain briefly your answer.

Question 1.59:
Any difference btw capital assignment taxation calculation method from

PIT and CIT perspectives?
(a) Yes
(b) No
Please briefly explain (must be attempted).

Question 1.60:
Any difference btw business income calculation method from PIT

(individuals having business income but do not maintain
invoices/documents) and CIT (normal enterprise) perspectives?
(a) Yes
(b) No

Question 1.61:
Any difference btw PIT taxation method for transfer of shares of listed
and non-listed company?
(a) Yes
(b) No

Question 1.62:
Mr Phan, a 45-year-old Vietnamese citizen, is CEO of Company X. Per
policy, Mr Phan’s children can study in a high school established and
operated by a subsidiary of the Company, with the tuition fees settled
directly by the Company to this subsidiary with valid supporting
documents.
Is the tuition fee exempted for PIT purpose?
(a) Yes
(b) No
Question 1.63:
Company A leases a fixed asset under operating lease arrangement from
Company B.
Who will depreciate the fixed asset?
(a) Company A
(b) Company B
Question 1.1
Foreign contractor tax (or withholding tax) is a tax type.
(1) Correct
(2) Incorrect
Briefly explain why (You must attempt this to achieve the full mark)
******
FCT is a mechanism to collect VAT and CIT from foreign organizations or VAT and PIT from
business individuals deriving income in Vietnam
Question 1.2
The current penalty rate for tax under-declaration is as follows:
(a) 0.05% (up to 90 days)/0.07% (from 91th day onwards) per day of late
tax payment
(b) 0.03% per day of late tax payment
(c) Same as (a), plus 20% on under-declared amount (subject to
(d) Same as (b), plus 20% on under-declared amount (subject to
*****
0.03% is interest on late tax payment. If the tax authority comes to audit and detects the under-
declaration, 20% penalty will apply.
1-3 times will be applied instead of 20% if the Company is considered as having acts of tax
evasion.
Question 1.3
Which of the following taxes are included in the VAT-taxable price:
(a) Special Sales Tax

(b) Import Tax
(c) Environmental Tax
Question 1.4
(a) Indirect tax: Taxpayer is not ultimate tax bearer while Direct Tax:
Taxpayer is ultimate tax bearer;
(b) Indirect tax and Direct Tax are the only method of categorizing tax
types under Vietnamese tax system;
(c) Indirect tax includes VAT, Special Sales Tax and Personal Income
Tax;
(d) Direct Tax includes Corporate Income Tax only.

*****
See underlined. Besides indirect/direct, there are other methods of categorizing tax types (i.e.
tax on assets, etc.)
Question 1.5
Transactions between parties - qualified as related parties in accordance with

current regulations - must be conducted on an arms-length basis. That means, the
pricing of the transactions must be in correspondence with acceptable market
pricing range.
Enterprises having related party transactions must declare and submit a disclosure
form to the tax authority together with its CIT finalization return. Also, they are
required to prepare and maintain a transfer pricing documentation to evidence their
compliance with TP regulations on an annual basis.
Otherwise, the tax authority reserves the right to imposed deemed Pricing/profit for
tax adjustment purpose.
There are currently 5 acceptable methods for transfer pricing purpose, namely
CUP (comparable uncontrolled price), Profit-based methods (re-sale method,
Comparable Profit Margin (CPM) method, cost plus method) and Profit Split
Method (PSM). Of which, the widely used and accepted are CUP and CPM
Method (CUP must be tried first)
Question 1.6
Mr A first arrived and started his assignment in Vietnam as from 1 July

2017. Up to 31 December 2017, he stayed in Vietnam for 183 days.
What is his first tax year in Vietnam:
(a) July 2017 to June 2018

(b) July 2017 to December 2017
(c) January 2017 to December 2017
*****
If in the first calendar year in Vietnam he qualifies as tax resident, then his first tax year will be
from his arrival date -> December (not 12 months from arrival)
Question 1.7
Fill in the missing parts:

Question 1.8
In principle, Foreign contractor tax (or withholding tax) and Personal

Income Tax is imposed at the time when:
(a) There are clear signs that incomes will be generated (i.e. signing labor
contract, signing contract price, issuing monthly pay calculation, receiving
shares, etc.);
(b) Cash is paid out/ realized;
****
Cash out  taxed
Question 1.9
(a) PIT is declared/provisionally paid on monthly/quarterly basis (subject

to conditions) and finalized at year-end;
(b) VAT is declared/paid on monthly/quarterly basis (subject to conditions)

and finalized at year-end;
(c) FCT is declared on ad-hoc basis (or monthly basis if registered in

written to tax authority) and finalized at contract termination;
(d) CIT is not required to be declared (but provisionally paid on a quarterly

basis), but must be finalized at year-end. The provisionally paid amount
must not be less than 20% the finalized amount (otherwise, penalties will
apply)
*****
No finalization for VAT
Question 1.10:
Which of the below is NOT the difference between PIT calculation

approach of Tax Resident and Non-tax resident:
(a) PIT rate

(b) PIT taxable income
(c) PIT deductions
(d) None of the above
Note, you are requested to specify the difference (in written).

*****
Rate: Progressive vs 20%
Taxable income: Worldwide vs VN-sourced
Deductions: Yes vs No
Foreign contractor A provides (a) training services carried out in Vietnam;
(b) grant a license for a Vietnamese company to use their patented
technology; and (c) provide goods under D-inco-term in Vietnam. The
value of the activities cannot be separated.
Question 1.11 - FCT rate applicable on whole contract value is:
(a) 5% VAT, 5% CIT

(b) 3% VAT, 2% CIT
(c) 10% CIT, 5% VAT
(d) 10% CIT, VAT exempted
(e) Others (please specify)
*****
Highest rate (per CIT)
Question 1.12
Mr A receives housing benefits in cash with the amount being USD2,000

per month. How is the amount taxed?
(a) Not subject to PIT;

(b) Fully subject to PIT;
(c) Subject to PIT, but only at lower of 15% assessable income (including
housing benefit);
(d) Subject to PIT, but only at lower of 15% assessable income (excluding
housing benefit)
*****
Benefit in cash  Fully taxable
In case of benefit in kind (Company pays to supplier, signs contract with supplier): (d) –
excluding housing benefit will apply
Question 1.13
Tax administration of Vietnam is regulated on a self-assessment basis.

That means, the tax-payer determines, declares and pays taxes to State
Budget themselves. If later, tax authorities come for audit and identify
under-declaration, tax recollection and administrative penalties will be
imposed.
Upon establishment, enterprises are granted with tax code (same as

Business Registration Code) for declaring and paying all types of taxes.
When they wrongly declares, they may make supplementary declaration
before the tax auditor comes.
After tax audit, if there is remaining dispute between taxpayer and tax
auditors, taxpayers can appeal in accordance with the Law on Appeal.
The Appeal must first be lodged to the local tax authority before
escalating to higher levels.
Foreign contractor A provides construction services (NOT including
providing materials).
(a) 3% CIT, 2% VAT

(b) 5% VAT, 3% CIT
(c) 5% CIT, 5% VAT
*****
2% CIT, 5% VAT
B (a VN entity)
Foreign Contractor A also signs contracts to sells the same goods to

Company C (another VN entity)
from Company B to Company C.
Question 1.15: When A receives monies from C, any FCT exposure?
(1) Yes
(2) No
Explain your answer
*****
Distribution within VN territory  1% CIT (VAT exempted given it has been settled at import
stage)
Question 1.16:
FILL IN THE BLANKS (similar fill-in accepted):
VAT is an indirect tax imposed on goods and services traded, produced

and consumed In Vietnam (including those purchased from
overseas)
B (a VN entity)
from Company B to Company C (another VN entity).
Company C will use such goods delivered by Company B (being

materials) to process to finished goods, then Company C will export the
finished goods to Foreign Contractor A (receiving processing service fee)
Question 1.17: Any FCT exposure?
(1) Yes
(2) No
*****
See Example in the first two (02) articles of Circular 103/2014/TT-BTC
Question 1.18:
VAT exemption – 0% VAT rate – Cases not required to declare and pay
VAT is similar in terms of:
(a) Same output rate;

(b) Output VAT not incurred;
(c) Corresponding input VAT are non-creditable;
(d) Corresponding input VAT are creditable
*****
Except for VAT exemption, input VAT is creditable for the other cases.
VAT exemption: No output rate in invoice
Cases not required to declare and pay: No invoice issuance
0%: Invoice with 0% rate


however – still reserves the right to fix the price of the goods to be sold
domestically.
Question 1.19: Any FCT exposure on the goods value which Company
B pays to A?
(1) Yes
(2) No
*****
Fix the price  distribution of goods in VN  FCT scope of application.
Rate: not clear, but most likely 1% CIT, VAT exempted (given paid at importing stage)
Question 1.20:
How many methods of VAT declaration?
(a) 1
(b) 2
(c) 3
(d) Others (Pls specify)
Name and briefly explain about them.

*****
Credit method and Direct Method
Credit Method: VAT = Output VAT – Creditable Input VAT (with conditions)
Direct Method:
- Case 1: Jewel Trader;
- Case 2: Deemed Method: %*Revenue (not applying VAS, invoicing requirements)

however – is still responsible for costs of distribution, advertising and
promotion.
Question 1.21:
Any FCT exposure on the goods value which Company B pays to A?
(1) Yes
(2) No
*****
Responsible for costs of distribution in Vietnam  distribution of goods in VN  FCT scope of application.
Rate: not clear, but most likely 1% CIT, VAT exempted (given paid at importing stage)
Question 1.22 - How many methods of FCT declaration and payment?
(1) 1
(2) 2
(3) 3
(4) Others
Name them and brief the calculation method (must be attempted)
*****
VAS Method: CIT 20% profit, VAT credit method

Deemed Method: CIT and VAT deemed rate (varied based on income types)
Hybrid Method: CIT deemed, VAT credit method
Question 1.23:
Which of the followings are NOT subject to VAT:
(a) Technology transfer

(b) Loan interest from an individual to an organization
(c) Software & software services
(d) Transfer of land use right
(e) Goods sold from non-tariff-zone enterprise (EPE) to other EPE
(g) All
Question 1.24:
How may types of main CIT deductible expense (s) when calculating
FCT:
A1
B2
C3
D4
What are they? (must be attempted)

*****
Work portion subcontracted to local subcontractor/ foreign subcontractor adopting hybrid or VAS method
Notes:
(a) Work portion as part of the work specified under Main Contract signed between Project Owner and Main
EPC Contractor
(b) Other purchases to serve the project implementation (say, milk/food/drinks for employees, etc.) are not
deductible.
*****
Besides ,also note some other minorspecial cases under Article 13 of Circular 103/2014/TT-BTC (i.e.
insurance cost incurred , transportation cost, etc. in case of leasing M&E to Vietnamese company, etc.)
Question 1.25:
That the contract price is quoted NET of Vietnamese taxes means:
(a) The foreign contractor is responsible for all the taxes in their tax
jurisdiction;
(b) The foreign contractor is responsible for all the taxes in their tax
jurisdiction and in Vietnam;
(c) The foreign contractor is not responsible for all the taxes in their tax
jurisdiction;
(d) The foreign contractor is responsible for all the taxes in their tax
jurisdiction but not responsible for those incurred in Vietnam;
*****
Only 3 combos of tax basis in Vietnam:
- Net of VAT and CIT

- Gross of VAT and CIT
- Net of CIT and gross of VAT
Question 1.26:
VAT taxing time of provision of goods and services?
(a) Transfer of goods ownership/ completion of services

(b) Transfer of goods ownership/ receipt of monies
(c) Transfer of goods ownership/ receipt of monies or completion of
services, whichever is later
(d) Transfer of goods ownership/ receipt of monies or completion of
services, whichever is earlier
Question 1.27 - The standard CIT rate applicable for FY2018 is:
 (a) 22%
 (b) 20%
 (c) 17%
 (d) Others (Please specify)
Question 1.28:
Cases of VAT refund?
(a) Export (accumulated from VND300 mil)

(b) Investment stage (accumulated from VND300 mil)
(c) ODA project unit
Question 1.29
Write down in your paper the missing steps (similar attempts accepted)
PIT calculation - Net salary (with housing allowance)
1. Determine Net Income excluding housing allowance: Net Salary + Taxable

Allowances
2. Determine Net income after Deductions (family relief, compulsory insurances, etc)
3. GROSS UP (2).
4. Add back Deductions to (2) to determine Total Taxable income before Housing
Allowance
5. Identify the lower of 15% total taxable income and actual housing allowance
6. Determine Net Income including housing allowance: Net Salary + Taxable
Allowances – Deduction (family relief, insurance, donation) + Taxable housing allowance
(identified under Step 5)
7. GROSS UP (6)
8. Compute monthly PIT and yearly PIT liability.
Question 1.30:
Timing for recognizing taxable incomes from services provision/
sale of goods is:
(a) Invoice issuance or services completed/ goods ownership
transfer
(b) Services completed/ Goods ownership transfer
(c) Others (Please specify)
*****
CIT is a bit different from VAT in terms of service provision recognition (VAT:
services completed or monies received, whichever is earlier)
Foreign contractor A provides goods being a production equipment with
accompanied services (i.e. installation, commissioning, etc.) in Vietnam.
The value of goods and services cannot be separated.
(a) 3% CIT, 2% VAT

(b) 3% VAT, 2% CIT
(c) 2% CIT (3% VAT may apply)
(d) 2% CIT, 3% VAT (3% VAT may not be applied in certain cases)
*****
For example, providing to non-tariff-zone company (not subject to VAT).
Question 1.32:
When output VAT is less than input VAT, enterprises will not be
allowed to recover the accumulated un-creditted input VAT and will
have to treat the input VAT as their business cost?
(a) Correct
(b) Not correct
Briefly explain your answer.
*****
Input VAT uncreditted may be offset against future output VAT or refunded in special
cases
Question 1.33:
Company A is granted incentive for manufacturing in industrial park.
In FY2015, Company A incurred the following incomes:
- Incomes from its manufacture activity in industrial park (in Ha Nam)
- Incomes from its manufacture activity in Hanoi
- Incomes from its trading activity in Ho Chi Minh city
All of the incomes above are qualified as incentive incomes.
(a) Correct
(b) Incorrect
****
The latter two items are not qualified given they do not qualify the basis based on which
incentives are granted (i.e. manufacturing in IP)  Treated as other taxable incomes subject to
20% standard rate.
Question 1.34:
Company A – established and operated under the laws of Singapore
– is contemplating to sell 20% of its shares in Company B – a
Vietnamese company – to Company C – established and operated
under the laws of US. Who will declare the Capital Assignment Tax
in accordance with the law?
 (a) Company A
 (b) Company B <since Seller and Buyer are foreign entities)
 (c) Company C
 (b) Company A and C
Question 1.35
In 2018, Mr A – a Japanese director – stays in Vietnam for 180 days.

However, he has obtained temporary residence card from VN Police
Department. He also has a house lease contract at Keangnam with the
term being 24 months from January 2018 to December 2018.
In 2018, pursuant to the Law of Japan, if requested, he can obtain a 2018

tax residence certificate in Japan
In 2018, what is the residency status of Mr A for Vietnamese PIT

purpose?
(a) Tax resident

(b) Non-tax resident <he has obtained certificate in JP  resident in JP)
(c) Tax resident (subject to conditions – to specify)
(d) Non-Tax resident (subject to conditions – to specify)
Question 1.36
Mr A invests VND1 billion to Company X. At the end of the year,

Company X pays Mr A VND10 million of dividend in share and VND20
million in cash.
This dividend is after-tax (i.e. Company X pays tax before distributing the
dividend).
How is the dividend received taxed?
(a) No PIT for both, given taxes are already settled before distribution;
(b) 5% PIT on both;
(c) 0.1% PIT on both;
(d) 5% PIT on VND20 million in cash only; <Share will be taxed upon
sale>
(e) 0.1% PIT on VND20 million in cash only;
(f) Others (Please specify)
Question 1.37 - In 2015, Company A donated
(1) monies in either cash or bank transfer to Bach Khoa university as
in the form of scholarships for best students; and
(2) Monies by bank transfer to a private fund formed by its Former
General Director to help poor people living in rural areas of
Vietnam.
Which of the above donations are deductible for CIT purpose:
(a) Both
(b) (1) <donation for education, building houses for the poor, health
care, disasters, government-backed special projects are deductible>
(c) (2) <other donations are not accepted>
(d) None
Question 1.38
Mr A signs a service contract to act as cabin translator for a Korean

company in Vietnam. He receives in total VND100 million for the work
during FY2018 (gross of PIT). He does not has a tax code in Vietnam.
Which of the below is correct PIT treatment?
(a) 10% withheld will be deducted against his total PIT payable in
FY2018 from all sources. His translation income will be considered as a
wage/salary income item for finalization purpose;
(b) 10% withheld. He will not be required to finalize his PIT;
(c) Same as (a), but the withheld rate is 20%<no tax code: 20%, having
tax code: 10%>
(d) Same as (b), but the withheld rate is 20%; <non tax resident  no
finalization>
Question 1.39
How are realized foreign exchange loss and gain (if any) be treated from
tax perspective in the below cases:
1. Incurred during construction period;

2. Incurred during operation period
Which of the below is correct:
(a) For 1: off-sheet monitored, net-off allocated to P&L after operation/

<within 5 years, Circular 78-96, Article 6>
For 2: Financial Exp and Financial Income
(b) Financial Exp and Financial Income (for both periods)

Price /
Output VAT
Goods used for promotion (in
line with Commerce Law)
Goods used for promotion
(NOT in line with Commerce
Law)
consumption (to continue to
be used in manufacture
process)
Goods used for internal Tự tra bảng nhé ^^
consumption (for internal
business purpose)
consumption (other
purposes)
Taxable Price / Output Input VAT Invoicing

VAT
Gifts to clients
Self-
constructed
Fixed asset for
VAT-able goods
manufacture
Discounted/ Tự tra bảng nhé ^^

Rebated Price
Gifts by
Voucher
Question 1.42:
VAT treatment of the below?
Price /
Output
VAT
Cash compensation/
support/bonus/
financial income
Goods compensation
Cash support to provide
services
Repairs, advertising and Tự tra bảng nhé ^^
marketing, commercial
promotion, and other specific
services performed outside
Vietnam
Contribute capital by assets to

set up new company
Taxable Price / Input VAT Invoicing

Output VAT
Selling assets of non-business
organizations and individuals that are
not VAT payers
Transfer of investment project
Collection on behalf not related to
sales of goods/ provision of services
of the collector
Tự tra bảng nhé ^^

Transfer of asset btw HQ & 100%
subsidiaries & btw 100% subsidiaries
with each other to serve VAT-able
goods manufacture
Transfer of asset btw dependent-

accounting units, upon merge, split,
conversion of business form
Input VAT Creditable

(Y or N)
Input VAT of damaged goods uncompensated by insurers
Input VAT of fixed assets for labor use (canteen, medical
facilities, WC, parking areas, etc.)
Input VAT of Housing cost for IP workers in accordance
with IP worker housing standards
Input VAT of Housing cost for expatriates signing labor
contracts with VN entity, paid by VN entity
Tự tra bảng nhé ^^
Input VAT of Housing cost for expatriates assigned to
Vietnam under assignment letter with foreign entity, paid
by foreign entity
Input VAT for goods produced for ODA, NGO funding
project
Input VAT of below-10-seat cars
Question 1.45:
Business expansion is entitled to CIT incentive of the Original Project.

(a) Absolutely correct
(b) Absolutely incorrect
(c) Partly correct
(d) Partly incorrect
Please explain why.

*****
Biz expansion – if satisfying some conditions (increasing at least 20% of capacity, etc.) –
can elect to enjoy current project’s incentive or enjoy a brand new project’s incentive.
Read Article 18.6, Cir 78/96 for details.
Question 1.46:
Company A is granted incentive being 2 years of exemption and 4
years of 50% reduction for investing in manufacture in industrial
park. Company A started operation in 2012.
In FY2011-FY2014, Company A incurred a loss being VND300 mil,
VND200 mil, VND200 mil and VND100 mil respectively. In FY2015,
Company A has a taxable profit being VND600 mil.
What is the final year of enjoying tax holiday of Company A?
*****
Tax holiday means tax exemption/reduction.
Tax holiday starts from FY2015 (first year of having taxable profit, still within
the 4-th year rule)  Final year will be FY2020
Question 1.47:
The statute of limitation for tax collection and penalties in cases
where the tax authorities have identified tax evasion by the taxpayer
are:
(a) 10 years back from date of violation detect/ 5 years back from
(b) 5 years back from date of violation detect/ 2 years back from
(c) 10 years back from date of violation detect/ 2 years back from
(d) 5 years for both cases
Question 1.48:
Company B is subsidiary of Company A. Before Company B is established, as authorized
by Investors in written, Company A pays a number of expenses on behalf of Company B
(i.e. company set-up fee, etc.), proper invoices are addressed to Company’s A name and
tax code & payments are made from Company A to suppliers.
Company B then settles all the cost to Company A by bank transfer.
Can Company B claim the input VAT associated with the invoices as its creditable input
VAT?
(a) Yes
(b) No
*****
Pre-establishment cost can claim for CIT and VAT as well (subject to documentation as indicated
above)
Question 1.49:
Briefly state the invoice issuance time for goods sale/ services
provision.
Goods: transfer of ownership

Services: Monies received/ service completion
Question 1.50:
Which of the below is NOT required for a legitimate VAT invoice for buyer’s input credit:
(a)
Invoice issued in accordance with the Law (having names of copies of an invoice, ordinal numbers
of invoices, Names of goods and services, units, quantities, unit prices of goods and services;
amount payable in numbers and in words, name of printing agencies, etc.);
(b)
Invoice’s Name, address, Tax Code issued to Buyer;
(c)
Having buyer and seller’s signatures and seals (except for certain special cases) and write the date
on the invoice.
(d)
Invoices must be written in Vietnamese
(e)
“Red” invoices must be available for every purchases
Briefly explain your choice (must be attempted)

*****
Note the VND200,000 cases as specified in Circular 39/2014/TT_BTC (important)
Also, note other cases for petrol, etc. <same section/ paragraphs with VND200,000 cases)
Question 1.51:
Company B applies VAT credit method. When it purchases a services
from Company A, it pays by T/T remittance to the designated bank
account of Company C (the account is not registered with tax
authority) as instructed by Company A in the relevant contract.
Can Company B claim the input VAT?

(a) Yes
(b) No
*****
Third-party payment via bank (also: payment by debt offset) is also accepted as a
non-cash payment evidence. See Article 14 – VAT circular.
Question 1.52:
In principle, invoices are issued upon sale of services or goods.
For incorrect invoice, not yet issued to buyer: Cross the copies, issue new invoice
For incorrect invoice, issued to buyer but NOT declares taxes: Minutes on invoice
revoke + Issue new invoice
For incorrect invoice, issued to buyer and DECLARED taxes:
- If the incorrectness does not impact the VAT payable: Make minutes on adjustment
- If the incorrectness impact the VAT payable: Makes minutes on adjustment + Issue
ADJUSTMENT invoice
Question 1.53:
The timing for determination of tax payable from real estate transfer
is:
(a) Upon contract effect (in case the contract specifies that buyer
will declare and pay taxes on behalf of seller)
(b) Upon the real estate transfer is duly registered/acknowledged
by competent authorities;
(c) Upon the real estate transfer is duly acknowledged by
competent authorities (in case the contract specifies that buyer
will declare and pay taxes on behalf of seller); < if not specified:
upon contract effect>
(d) Upon the real estate transfer is duly registered/acknowledged
by competent authorities (in case the contract does not specify
that buyer will declare and pay taxes on behalf of seller);
Question 1.54:
Double tax avoidance are regulated under treaties signed between

countries. VN now has signed treaties with more than sixty countries.
There are two schemes to avoid double taxation, namely tax CREDIT
(pay first, then CREDITTED against similar tax imposed on SAME
income in home country) & tax exemption (not paying, submitting a
notification dossier on tax exemption under treaty).
Double tax treaties shall prevail the domestic regulations and apply to
DIRECT taxes (such as CIT, PIT) only. On a case by case basis, certain
incomes may enjoy favorable treatment under treaties (royalty, interest,
business incomes; individual incomes, income from share transfer or
real estate transfer, etc.). Every treaties has similar articles guiding on
such specific incomes.
Question 1.55:
Every provision types are not accepted for CIT purpose given its
uncertainty.
(a) Correct
(b) Not correct
Briefly explain your answer (must be attempted).

*****
Provision for devaluation of inventories, bad debts, devaluation of financial
investment and warranty are accepted – if made in line with Ministry of Finance’s
guidance.
Question 1.56:
Science & Technology Fund (maximum 10% assessable income) must

be disbursed minimum --- % within ---- years. Otherwise, tax
recollection and interest on late payment will apply.
(a) 100% - 10 years

(b) 70% - 5 years
(c) 50% - 5 years
Question 1.57:
Company A has a machinery with current cost being VND1 billion.

Company A now upgrades the machine to increase its capacity, total
upgrade fee is VND0.2 billion. After such upgrade, the cost of the
machinery is now:
(a) 1 billion
(b) 1.2 billion
(c) 0.8 billion
*****
Upgrade expense: capitalized to increase original cost;
Repair expense: not capitalized, treated as operating cost
Question 1.58:
When assets are disposed, monies collected are recorded as incomes

and net book value (remaining value) is recorded as expenses.
When under-10-seat cars are disposed, however, the net book value is
only capped at VND1.6 billion*years of use.
(a) Correct
(b) Not correct
Please explain briefly your answer.

*****
Remember this? Doanh nghiệp A có mua xe ô tô dưới 9 chỗ ngồi có nguyên giá là 6
tỷ đồng, công ty trích khấu hao 1 năm sau đó thực hiện thanh lý. Số khấu hao theo
chế độ quản lý sử dụng và trích khấu hao tài sản cố định là 1 tỷ đồng (thời gian trích
khấu hao là 6 năm theo văn bản về khấu hao tài sản cố định). Số trích khấu hao theo
chính sách thuế được tính vào chi phí được trừ là 1,6 tỷ đồng/6 năm = 267 triệu đồng.
Doanh nghiệp A thanh lý bán xe là 5 tỷ đồng.
Thu nhập từ thanh lý xe: 5 tỷ đồng - (6 tỷ đồng - 1 tỷ đồng) = 0 đồng
Question 1.59:
Any difference btw capital assignment taxation calculation method from

PIT and CIT perspectives?
(a) Yes
(b) No

*****
Both are taxed at 20% of net profit
Question 1.60:
Any difference btw business income calculation method from PIT

(individuals having business income but do not maintain
invoices/documents) and CIT (normal enterprise) perspectives?
(a) Yes
(b) No
*****
For PIT: deemed rate (given no maintaining invoices/documents)
For CIT: 20% net profit
Question 1.61:
Any difference btw PIT taxation method for transfer of shares of listed
and non-listed company?
(a) Yes
(b) No

*****
Listed: securities transfer: 0.1% sale proceed
Non-listed: capital transfer: 20% Net profit
Question 1.62:
Mr Phan, a 45-year-old Vietnamese citizen, is CEO of Company X. Per
policy, Mr Phan’s children can study in a high school established and
operated by a subsidiary of the Company, with the tuition fees settled
directly by the Company to this subsidiary with valid supporting
documents.
Is the tuition fee exempted for PIT purpose?
(a) Yes
(b) No
*****
No exemption for Vietnamese employee (only applicable to expatriate)
Question 1.63:
Company A leases a fixed asset under operating lease arrangement from
Company B.
Who will depreciate the fixed asset?
(a) Company A
(b) Company B
*****
Operating lease: The lessor will depreciate
Financial lease: The Company who leases the asset will depreciate
ROUND 2 –
SECONDARY SCHOOL
Question 2.1
Under the VAT credit method, which of the following conditions are NOT
accepted for input VAT creditability?
(1) Input VAT associated with purchased goods and services which are
not relevant to Output (VAT-exempted goods/services);
not relevant to Output (VAT-taxable goods/services);
(3) Input VAT without legitimate invoices;
(4) Input VAT with legitimate invoices but supporting documents do not
clearly imply the output-related nature;
(5) Input VAT of goods purchased as gifts to clients, paid in cash (the
amount of the gifts are VND18,000,000)
Answers:
(a) 2,3 and 4
(b) 2,3,4 and 5
(c) 1, 2,3 and 4
Question 2.2
Which of the below is NOT 100% correct with reference to core principles
of a deductible expense for CIT purpose:
1. Must be business-related;
2. Must be supported by invoices and proper documents;
3. Payment must be made directly from buyer to seller via bank transfer
(note, no bank account registration is required now)
4. Non-cash payment is required for all expenses from VND20 mil;
5. Non-cash payment is required for all purchases of goods and services
from suppliers from VND20 mil
Answers:
(a) 3 and 4
(b) 3 and 5
(c) 1 and 3
(d) 1 and 4
Question 2.3:
In 2015, Company A incurred a number of expenses to its employees as

follows:
(1) Purchase uniform for its 20 employees.Total purchase is VND200 mil
(2) Paying per diem for its Director going on business trip. The per diem
paid is VND500,000/day * 3 days (note, the prescribed maximum level
stipulated for State’s officials is VND300,000/day
(3) Paying wedding allowances, company holiday trips, organizing year-
end parties, presenting long-term service awards, etc. to its employees;
(4) Annual bonus – which is accrued as at 31 Dec 2015. The bonus was
not yet settled now (now: April 2016)
(5) Monthly salary for its Chairman – who also acts as General Director of
Company A.
Which one above is deductible (with required conditions satisfied)?

(a) 1, 2, 3, 4, 5
(b) 5 only
(c) 4 and 5
(d) Others (to specify)
Question 2.4
A temporary difference is a difference by taxation timing only.
Company A accrues VND1 billion of withholding tax expense as at 31

Dec 2017 – and excludes the same for FY17’s CIT purpose given the
accrual is not made on a sound basis.
As of 3 January 2018, the Company pays VND0.8 billion of withholding

tax to State Budget. For the difference, the Company makes a reversal
entry to its accounting system in 2018.
Which of the following tax adjustment should be made to FY2018’s CIT

return?
(a) Increase taxable profit by 0.8 billion;

(b) Increase taxable profit by 1 billion;
(c) Decrease taxable profit by 0.8 billion;
(d) Decrease taxable profit by 1 billion
(e) Others
Question 2.5:
Company A has three (3) business activities in 2015: the
manufacturing activity is entitled to 10% tax rate (with further 50%
reduction incentive). The service activity and the real estate transfer
activity are not entitled to any incentives.
The Company’s operation results in 2015 are as follows:
Manufacturing: Profit VND1 bil
Service: Loss (VND 2 bil)
Real estate: Profit VND2 bil
The taxable income of Company in 2015 is
(a) 1 bil
(b) 3 bil
(c) 0
(d) Others
Question 2.6
By “deduction”, we are referring to family circumstances deduction. Which of the

following statement is NOT correct?
1. The point of time to start calculating deduction for PIT purpose is the time of
making registration of such deduction with the tax authority;
2. The deduction can be applied for both entitled persons (say, children deduction
can be applied for both Mum and Dad)
3. Supporting documents are required to be maintained at the Company’s

premises to evidence eligibility of the deduction
4. Non tax residents cannot claim the deduction for PIT purpose
5. If Mr A’s son are borne 15 May 2017, Mr A will claim deduction of full 3.6
million/month/dependent for May 2017
6. If Mr A terminates his contract and leaves Vietnam on 15 July 2017, Mr A will

claim deduction of full 3.6 million/month/dependent for July 2017
7. Dependent registration must be made by 31 December of a calendar year

Question 2.7
Which of the below cases are subject to PIT on real estate transfer?
1. Mr A and Mr B’s fathers are siblings. Mr A transfers his house to Mr B;

2. Mr A transfers one of his two (02) houses to Mr B.
3. Mr A purchases one house for VND1 billion, now he sells it to Mr B for
only VND0.8 billion.
4. Mr A is son of Mr B. Mr B is 90 years old and in a coma. Per Mr’B’s
legitimate inheritance note, Mr A will inherit one of Mr B’s three houses in
Hanoi.
Answers:
(a) None
(b) 2
(c) 1 and 2
Question 2.8:
Which of the below is DEDUCTIBLE for tax purpose:
(1) Company A purchased goods from a household. No invoice is
available. However, Form 01/TNDN is obtained.
(2) Company A made a provision (i.e. estimate of loss) for its
obsolete inventory in FY2015. The Company did follow the
provision regulation in this regard.
(3) Company A’s drivers surpassed the maximum allowed speed in
highway while on business. As a result, he is charged VND2 mil
of penalty. Company will bear the expense.
(4) Company A’s employees are remunerated on a gross basis (i.e.
PIT liability is borne by the employee). Company A withheld and
paid the PIT to the State Budget as required under the
regulation. Company A took the PIT as its expense in the year.
(5) Company A purchases services from a business individuals with
revenue more than VND100 mil per year, paying by bank
transfer
revenue below VND100 mil per year, paying in cash.
Question 2.9:
(1) As at 30 August 2015, Company A incurred a receivables from
customers for exporting goods amounting to USD5,000 (FX =
20,000). As at 30 September 2015, Company A performed end-
quarter revaluation of the receivable and recorded a FX loss
being VND5 mil to its financial expenses. Further, as of 31 Dec
2015, Company revaluated its payable accounts and incurred a
FX gain being VND3 mil.
(2) Company A purchased services from a supplier. It, however,
paid late than scheduled and had to pay a contract violation
penalty.
(3) Golf fee paid to its GD to play with potential business partners.
Question 2.10:
(1) Company accrued some expenses in 2015. The expenses are
related to revenue of 2015. The accrual is based on contract
from supplier. The contract stipulates that payment will be due
on May 2016, that is why as of 31 March 2016 (deadline of
submission of CIT return), Company A has not settled the
amount.
(2) The Company incurred significant expenses for its advertising &
promotion activities in 2015. Total deductible expenses of
Company A in 2015 is VND1 billion in which the A&P expenses
account for VND200 mil.
(3) Company A leased a house for its GD from an individual. No
invoice is available;
(4) Company A borrowed from its Parent Company in Japan USD1
mil with interest rate being 17%. At the loan time, the State Bank
of Vietnam’s lending rate is 12%. Total interest rate charged is
VND50 mil.
Question 2.11:
0% VAT rates will NOT apply to:
(a) Online payment services provided to foreign organizations

(b) Petrol sold to cars of non-tariff-zone enterprises (purchased
domestically);
(c) Cars sold to non-tariff-zone enterprises;
(d) Lease of housing and meeting venue for non-tariff-zone enterprises;
(e) Restaurants located in Hanoi providing lunch services to Directors of
a non-tariff-zone enterprises
(f) All
(g) Others (Please specify)
Question 2.12:
0% VAT rates apply to:
(a) Exported
(b) Considered-as-export goods (on-spot exports, sale to non-tariff
zones, etc.)
(c) Services provided to foreigners (organization/individuals)
(d) Services provided to foreigners (organization/individuals) and
consumed outside Vietnam
(e) International transportation;
(f) All of the above
(g) Others (please specify)
Question 2.13:
Which of the following transactions would be subject to foreign

contractor tax (FCT) in Vietnam?
(i) Repair of a Vietnamese internet cable offshore

(ii) Online training for the employees of a Vietnamese company where
the server is hosted overseas
(iii) An intermediary arrangement for a Vietnamese company to provide
services in Singapore
(iv) Granting of rights to a Vietnamese company to use the international
brand name of a world famous product in Vietnam
A i and ii
B ii and iv
C i and iii
D iii and iv
Question 2.14:
Which of the following transactions would NOT be subject to foreign contractor tax
(FCT) in Vietnam?
(i) A foreign contractor provides training services to employees of a Vietnamese company.

The training is conducted in both France and Vietnam.
(ii) A foreign contractor performs brokerage services (finding customers) to sell coffee of a
Vietnamese brand in Indonesia market;
(iii) A foreign contractor conducts a market survey for the South Beverage Market of
Vietnam for a Vietnamese entity. The market survey is fully performed from the contractor’s
office in South Korea (i.e. all the works are done online from their laptops)
(iv) A foreign seller sells electronic equipment to a Vietnamese entity. As agreed by both
parties, the foreign seller will be responsible to bear all the cost and risks associated with the
goods to the factory of the Vietnamese entity in Hai Duong province
(v) A foreign contractor performs advertisement services for a Vietnamese entity to promote
its fruit in Singaporean market. The services are fully performed in Singapore (i.e. by way of
online advertisement)
A i and ii
B ii and iv
C i and iii
D iii and iv
Question 2.15: Fill in the missing numbers:
……… and …………. (write your numbers down)
VAT-ABLE REVENUE VAT RATE VAT PAYABLE CIT-ABLE REVENUE CIT RATE CIT PAYABLE NET PAYMENT TOTAL FCT PAYABLE
??? 3% ??? 970,000 2% 19,400 950,600 49,400
Question 2.16: Which of the below highlighted numbers are the
contract prices in case the contract prices are quoted on a:
1. Gross of CIT and net of VAT basis;

2. Gross of VAT and CIT basis;
3. Net of VAT and CIT basis
Answers are below (in chronological order):
(a) 1,000,000 - 970,000 – 950,600

(b) 970,000 – 1,000,000 – 950,600
(c) 970,000 – – 950,600 - 1,000,000
(d) 950,600 – 970,000 – 1,000,000
1,000,000 3% 30,000 970,000 2% 19,400 950,600 49,400
Question 2.17:
Mr Lavine Adam – a US resident – first came to Vietnam on 1 January

2015 to take on his assignment as CEO of Company A. For that purpose,
he successfully registered a temporary residence card in Vietnam with the
local police department & also contracted a house rent with a landlord with
term being 9 months. In 2015, he stayed in Vietnam for 30 days in total.
What is Mr Adam’s residency status in 2015?
A. Tax resident
B. Non-tax resident
C. Tax resident (subject to condition)
D. Non-tax resident (subject to condition)
Question 2.18:
Which of the following incomes would NOT FULLY be subject to Personal Income Tax in VN:
A. Mr A – a Singaporean – currently works as a manager for a Vietnamese EPE. Besides monthly salary,
the Vietnamese EPE also covers tuition fee for his two sons who are studying in University of Nanyang
in Singapore.
B. Mr B is an employee of Company A. In this month, Mr B received a per diem being VND2,000,000 for
2 days of his business trip.
C. Mr C is an employee of Company A. Mr C receives mid-shift meal in cash being VND1,000,000 per

month for enjoying his lunch.
D. Mr D is a foreign employee of Company A. In order to improve his recently-down working spirit,

Company A decided to grant him a free round-trip air ticket to visit his family in Korea four times annually.
E. Mr E is an employee of Company A. Mr E’s mother in law has an intensive disease. Company A

decided to support VND15 mil out of total incurred hospital fee being VND100 mil for Mr E for treatment
for his mother. Most of Mr E’s hospital fee is covered under his purchased insurance scheme (i.e. 90% of
total incurred)
F. Mr F is assigned to be CEO of Company A as from 1 January 2016. As part of his relocation, he is

entitled to a one-off relocation allowance being VND200 mil to settle down in Hanoi in his first month.
G. Mr G is an employee of Company A. During the month, Mr G pays out a lot of cash for his taxi
transportation (for business), entertainment with business partners, air tickets to go to Ho Chi Minh office,
etc. then gets reimbursement from Company A at the month-end (paid via bank together with his
monthly salary)
Question 2.19:
Which of the following PIT calculation approach is correct:
A. Mr A received USD2,000 per month (paid directly to his bank acocunt) as

support for his housing rental arrangement. When calculating PIT for him,
his Company only took the lower of 15% total taxable income being
USD800 as his taxable housing benefit;
B. Mr B is an employee of Company A. In this month, Mr B worked like a

buffalo (i.e. all night long) and received significant overtime payment for
such night shifts. When calculating PIT for him, his Company only took the
100% normal hourly rate as his taxable incomes.
C. Mr C is a foreign employee of Company A and a tax resident in Vietnam.

Mr C’s income in the month includes (a) his Japanese salary; (b) his
Vietnamese salary; and (c) his other incomes from being a lecturer of
Japanese at a language center in Vietnam. When calculating PIT for him,
his Company only took (a) and (b).
Question 2.20:
Which of the followings are considered as eligible PIT deductions:
A. Personal relief – VND9 mil per month
B. Dependent relief – Adopted children over 18 years of age, fully functional for working but
currently not working given on-going university study (i.e. no income)
C. Dependent relief – Adopted children over 18 years of age, fully functional for working but
currently not working given on-going university study (i.e. having income from various sources
amounting to VND1 mil per year)
D. Dependent relief - Parent in law who is 100 years old
E. Dependent relief - Legitimate adoptive Mum who is 50 years old, earning VND10 mil per
month.
F. Compulsory deductions withheld from salary in Japan
G. Voluntary pension fund not exceeding VND12 mil/year. The pension fund is a vonluntary
pension fund in the US (where the expatriate employee is originally based).
H. Donations to charitable, humantarian and study encouragement funds (subject to condition)
I. Donations to establishments taking care of disadvantaged children, homeless eldery people

(subject to condtion)
Question 2.21:
Mr Tomaz is a Hong Kong citizen and tax resident. He arrived in Vietnam to
work on 21 April 2014 and on completion of his employment contract, he left
Vietnam on 31 October 2015. In the years 2014 and 2015, he spent the
following numbers of days in Vietnam:
From 21 April to 31 December 2014 – 130 days

From 1 January to 20 April 2015 – 64 days
From 21 April to 31 October 2015 – 110 days
Based solely on the above information, what is Mr Tomaz’s tax residency

status in his first and second tax year in Vietnam?
First year Second year

A Resident Resident
B Resident Non-resident
C Non-resident Resident
D Non-resident Non-resident
Question 2.22:
Mr Ho is a tax resident in Vietnam. In 2014 he received income from

Country X, on which Country X had imposed personal income tax at its
domestic rates. Mr Ho is not a resident in Country X.
Which of the following statements correctly describes Mr Ho’s

entitlement to a tax credit in Vietnam for the tax imposed by County
X?
A No tax credit can be claimed in Vietnam
B A tax credit can be claimed in Vietnam only if Country X has a double

tax avoidance agreement (DTAA) with Vietnam
C A tax credit can be claimed in Vietnam even if Country X does not have
a DTAA with Vietnam, but only up to the amount of personal income tax
payable under the Vietnamese tax regulations on the income
D A tax credit can be claimed in Vietnam for the full amount of the
overseas tax without any conditions or restrictions
Question 2.23:
Which of the following items of income would NOT be subject to

personal income tax in Vietnam?
(1) Medical support for fatal disease from the employer to the parent-in-
law of an employee
(2) One time round trip home leave air fares for the family of an expatriate
employee
(3) Kindergarten tuition fees for the children of a Vietnamese employee
working abroad
(4) Voucher issued by the employer to an employee for lunches in the
canteen operated by the employer
(5) Purchase of medical insurance (non-accumulative insurance) from
foreign insurers
(6) Company purchase of life insurance (accumulative insurance) from
foreign insurers for employees (at the time of purchase)
domestic insurers for employees (at the time of purchase)
(8) One-off relocation support in cash for Vietnamese (on secondment in
Germany) to come back to his company in Vietnam
Question 2.1
Under the VAT credit method, which of the following conditions are NOT
accepted for input VAT creditability?
not relevant to Output (VAT-exempted goods/services);
not relevant to Output (VAT-taxable goods/services);
(3) Input VAT without legitimate invoices;
(4) Input VAT with legitimate invoices but supporting documents do not
clearly imply the output-related nature;
(5) Input VAT of goods purchased as gifts to clients, paid in cash (the
amount of the gifts are VND18,000,000) <value <20mil  ok>
Answers:
(a) 2,3 and 4
(b) 2,3,4 and 5
(c) 1, 2,3 and 4
Question 2.2
Which of the below is NOT 100% correct with reference to core principles
of a deductible expense for CIT purpose:
1. Must be business-related;
2. Must be supported by invoices and proper documents;
3. Payment must be made directly from buyer to seller via bank transfer
(note, no bank account registration is required now) <Via 3rd party payment is
also accepted>
4. Non-cash payment is required for all <not all, say: salary payment will not
require> expenses from VND20 mil;
5. Non-cash payment is required for all purchases of goods and services
from suppliers from VND20 mil
Answers:
(a) 3 and 4
(b) 3 and 5
(c) 1 and 3
(d) 1 and 4
Question 2.3:
In 2015, Company A incurred a number of expenses to its employees as follows:

(1) Purchase uniform for its 20 employees.Total purchase is VND200 mil <in-kind>
(2) Paying per diem for its Director going on business trip. The per diem paid is
VND500,000/day * 3 days (note, the prescribed maximum level stipulated for
State’s officials is VND300,000/day) <per diem is fully deductible if paid in line with
company policy>
(3) Paying wedding allowances, company holiday trips, organizing year-end
parties, presenting long-term service awards, etc. to its employees; <welfare less
than average one-month salary>
(4) Annual bonus – which is accrued as at 31 Dec 2015. The bonus was not yet
settled now (now: April 2016) <must be settled before 31 Mar 16  non-
deductible>
(5) Monthly salary for its Chairman – who also acts as General Director of
Company A.<deductible – Chariman participating in business>
Which one above is deductible or deductible (with required conditions
satisfied)?
(a) 1, 2, 3, 4, 5
(b) 5 only
(c) 4 and 5
(d) Others (to specify): 1,2,3,5
Question 2.4
A temporary difference is a difference by taxation timing only.
Company A accrues VND1 billion of withholding tax expense as at 31

Dec 2017 – and excludes the same for FY17’s CIT purpose given the
accrual is not made on a sound basis.
As of 3 January 2018, the Company pays VND0.8 billion of withholding

tax to State Budget. For the difference, the Company makes a reversal
entry to its accounting system in 2018.
Which of the following tax adjustment should be made to FY2018’s CIT

return?
(a) Increase taxable profit by 0.8 billion;

(b) Increase taxable profit by 1 billion;
(c) Decrease taxable profit by 0.8 billion;
(d) Decrease taxable profit by 1 billion <0.8 billion realized, 0.2 billion
reversed – avoidance of double taxation>
(e) Others
Question 2.5:
Company A has three (3) business activities in 2015: the
manufacturing activity is entitled to 10% tax rate (with further 50%
reduction incentive). The service activity and the real estate transfer
activity are not entitled to any incentives.
The Company’s operation results in 2015 are as follows:
Manufacturing: Profit VND1 bil
Service: Loss (VND 2 bil)
Real estate: Profit VND2 bil
The taxable income of Company in 2015 is
(a) 1 bil
(b) 3 bil
(c) 0
(d) Others: VND2 billion (Exception: Loss from other business
activities cannot offset against profit of real estate activity)
Question 2.6
By “deduction”, we are referring to family circumstances deduction. Which of the

following statement is NOT correct?
1. The point of time to start calculating deduction for PIT purpose is the time of
making registration of such deduction with the tax authority; <start from the time of
having the responsibility to take care: say, child birth month>
2. The deduction can be applied for both entitled persons (say, children deduction
can be applied for both Mum and Dad) <can only choose one>
3. Supporting documents are required to be maintained at the Company’s

premises to evidence eligibility of the deduction
4. Non tax residents cannot claim the deduction for PIT purpose
5. If Mr A’s son are borne 15 May 2017, Mr A will claim deduction of full 3.6
million/month/dependent for May 2017 <full-month claim>
6. If Mr A terminates his contract and leaves Vietnam on 15 July 2017, Mr A will

claim deduction of full 3.6 million/month/dependent for July 2017
7. Dependent registration must be made by 31 December of a calendar year

Question 2.7
Which of the below cases are subject to PIT on real estate transfer?
1. Mr A and Mr B’s fathers are siblings. Mr A transfers his house to Mr B;

2. Mr A transfers one of his two (02) houses to Mr B.
3. Mr A purchases one house for VND1 billion, now he sells it to Mr B for
only VND0.8 billion.
4. Mr A is son of Mr B. Mr B is 90 years old and in a coma. Per Mr’B’s
legitimate inheritance note, Mr A will inherit one of Mr B’s three houses in
Hanoi.
Answers:
(a) None
(b) 2
(c) 1 and 2
(d) Others (Please specify) : 2 and 3 (1 and 4 are exempted)
Question 2.8:
(1) Company A purchased goods from a household. No invoice is
available. However, Form 01/TNDN is obtained.
(2) Company A made a provision (i.e. estimate of loss) for its
obsolete inventory in FY2015. The Company did follow the
provision regulation in this regard.
(3) Company A’s drivers surpassed the maximum allowed speed in
highway while on business. As a result, he is charged VND2 mil
of penalty. Company will bear the expense.
(4) Company A’s employees are remunerated on a gross basis (i.e.
PIT liability is borne by the employee). Company A withheld and
paid the PIT to the State Budget as required under the
regulation. Company A took the PIT as its expense in the year.
revenue more than VND100 mil per year, paying by bank
transfer
revenue below VND100 mil per year, paying in cash <Paying in
cash is ok for this case>
Question 2.9:
(1) As at 30 August 2015, Company A incurred a receivables from
customers for exporting goods amounting to USD5,000 (FX = 20,000).
As at 30 September 2015, Company A performed end-quarter
revaluation of the receivable and recorded a FX loss being VND5 mil to
its financial expenses. Further, as of 31 Dec 2015, Company revaluated
its payable accounts and incurred a FX gain being VND3 mil. <realized
FX loss deductible, unrealized FX gain treated as income>
(2) Company A purchased services from a supplier. It, however, paid late
than scheduled and had to pay a contract violation penalty. <contract
penalty is deductible>
(3) Golf fee paid to its GD to play with potential business partners.
Question 2.10:
(1) Company accrued some expenses in 2015. The expenses are
related to revenue of 2015. The accrual is based on contract
from supplier. The contract stipulates that payment will be due
on May 2016, that is why as of 31 March 2016 (deadline of
submission of CIT return), Company A has not settled the
amount. <accrual made on sound basis, paid in line with
schedule is deductible>
(2) The Company incurred significant expenses for its advertising &
promotion activities in 2015. Total deductible expenses of
Company A in 2015 is VND1 billion in which the A&P expenses
account for VND200 mil. <no A&P cap now, fully deductible>
(3) Company A leased a house for its GD from a non-business
individual. No invoice is available <Form 01/TNDN available 
ok>
(4) Company A borrowed from its Parent Company in Japan USD1
mil with interest rate being 17%. At the loan time, the State Bank
of Vietnam’s lending rate is 12%. Total interest rate charged is
VND50 mil. <less than 1.5 times SBV rate being 18%  ok.
Assuming total interest expense less than 20% EBITDA>
Question 2.11:
0% VAT rates will NOT apply to:
(a) Online payment services provided to foreign organizations

(b) Petrol sold to cars of non-tariff-zone enterprises (purchased
domestically);
(c) Cars sold to non-tariff-zone enterprises;
(d) Lease of housing and meeting venue for non-tariff-zone enterprises;
(e) Restaurants located in Hanoi providing lunch services to Directors of
a non-tariff-zone enterprises
(f) All
(g) Others (Please specify)
Question 2.12:
0% VAT rates apply to:
(a) Exported
(b) Considered-as-export goods (on-spot exports, sale to non-tariff
zones, etc.)
(c) Services provided to foreigners (organization/individuals)
(d) Services provided to foreigners (organization/individuals) and
consumed outside Vietnam
(e) International transportation;
(f) All of the above
(g) Others (please specify): a + b + d + e
Question 2.13:
Which of the following transactions would be subject to foreign

contractor tax (FCT) in Vietnam?
(i) Repair of a Vietnamese internet cable offshore

(ii) Online training for the employees of a Vietnamese company where
the server is hosted overseas <online training not exempted>
(iii) An intermediary arrangement for a Vietnamese company to provide
services in Singapore
(iv) Granting of rights to a Vietnamese company to use the international
brand name of a world famous product in Vietnam
A i and ii
B ii and iv
C i and iii
D iii and iv
Question 2.14:
Which of the following transactions would NOT be subject to foreign contractor tax
(FCT) in Vietnam?
(i) A foreign contractor provides training services to employees of a Vietnamese company. The
training is conducted in both France and Vietnam. <if separated, the portion in France would be
exempted>
(ii) A foreign contractor performs brokerage services (finding customers) to sell coffee of a Vietnamese
brand in Indonesia market;
(iii) A foreign contractor conducts a market survey for the South Beverage Market of Vietnam for a
Vietnamese entity. The market survey is fully performed from the contractor’s office in South Korea
(i.e. all the works are done online from their laptops) <consumed in VN>
(iv) A foreign seller sells electronic equipment to a Vietnamese entity. As agreed by both parties, the
foreign seller will be responsible to bear all the cost and risks associated with the goods to the factory
of the Vietnamese entity in Hai Duong province
(v) A foreign contractor performs advertisement services for a Vietnamese entity to promote its fruit in
Singaporean market. The services are fully performed in Singapore (i.e. by way of online
advertisement) <online advertisement not exempted>
A i and ii
B ii and iv
C i and iii
D iii and iv
Question 2.15: Fill in the missing numbers:
1,000,000 and 30,000 (write your numbers down)
??? 3% ??? 970,000 2% 19,400 950,600 49,400
Question 2.16: Which of the below highlighted numbers are the
contract prices in case the contract prices are quoted on a:
1. Gross of CIT and net of VAT basis;

2. Gross of VAT and CIT basis;
3. Net of VAT and CIT basis
Answers are below (in chronological order):
(a) 1,000,000 - 970,000 – 950,600

(b) 970,000 – 1,000,000 – 950,600
(c) 970,000 – – 950,600 - 1,000,000
(d) 950,600 – 970,000 – 1,000,000
1,000,000 3% 30,000 970,000 2% 19,400 950,600 49,400
Question 2.17:
Mr Lavine Adam – a US resident – first came to Vietnam on 1 January

2015 to take on his assignment as CEO of Company A. For that purpose,
he successfully registered a temporary residence card in Vietnam with the
local police department & also contracted a house rent with a landlord with
term being 9 months. In 2015, he stayed in Vietnam for 30 days in total.
What is Mr Adam’s residency status in 2015?
A. Tax resident
B. Non-tax resident
C. Tax resident (subject to condition) <whether he is resident of US in 2015
or not>
D. Non-tax resident (subject to condition) <whether he is resident of US in
2015 or not> - both answers are accepted
Question 2.18:
Which of the following incomes would NOT FULLY be subject to Personal Income Tax in VN:
A. Mr A – a Singaporean – currently works as a manager for a Vietnamese EPE. Besides monthly salary,
the Vietnamese EPE also covers tuition fee for his two sons who are studying in University of Nanyang
in Singapore. <Study overseas / University: not exempted>
B. Mr B is an employee of Company A. In this month, Mr B received a per diem being VND2,000,000 for
2 days of his business trip.
C. Mr C is an employee of Company A. Mr C receives mid-shift meal in cash being VND1,000,000 per

month for enjoying his lunch. <the under-capped portion not subject>
D. Mr D is a foreign employee of Company A. In order to improve his recently-down working spirit,

Company A decided to grant him a free round-trip air ticket to visit his family in Korea four times annually.
E. Mr E is an employee of Company A. Mr E’s mother in law has an intensive disease. Company A

decided to support VND15 mil out of total incurred hospital fee being VND100 mil for Mr E for treatment
for his mother. Most of Mr E’s hospital fee is covered under his purchased insurance scheme (i.e. 90% of
total incurred) <only 10% uncovered being VND10 mil is deductible>
F. Mr F is assigned to be CEO of Company A as from 1 January 2016. As part of his relocation, he is

entitled to a one-off relocation allowance being VND200 mil to settle down in Hanoi in his first month.
G. Mr G is an employee of Company A. During the month, Mr G pays out a lot of cash for his taxi
transportation (for business), entertainment with business partners, air tickets to go to Ho Chi Minh office,
etc. then gets reimbursement from Company A at the month-end (paid via bank together with his
monthly salary) <BIZ-RELATED EXPENSE  PIT EXEMPTED>
Question 2.19:
Which of the following PIT calculation approach is correct:
A. Mr A received USD2,000 per month (paid directly to his bank acocunt) as

support for his housing rental arrangement. When calculating PIT for him,
his Company only took the lower of 15% total taxable income being
USD800 as his taxable housing benefit; <IN CASH  FULL>
B. Mr B is an employee of Company A. In this month, Mr B worked like a

buffalo (i.e. all night long) and received significant overtime payment for
such night shifts. When calculating PIT for him, his Company only took the
100% normal hourly rate as his taxable incomes.
C. Mr C is a foreign employee of Company A and a tax resident in Vietnam.

Mr C’s income in the month includes (a) his Japanese salary; (b) his
Vietnamese salary; and (c) his other incomes from being a lecturer of
Japanese at a language center in Vietnam. When calculating PIT for him,
his Company only took (a) and (b).
Question 2.20:
Which of the followings are considered as eligible PIT deductions:
A. Personal relief – VND9 mil per month
B. Dependent relief – Adopted children over 18 years of age, fully functional for working but
currently not working given on-going university study (i.e. no income)
C. Dependent relief – Adopted children over 18 years of age, fully functional for working but
currently not working given on-going university study (i.e. having income from various sources
amounting to VND1 mil per year) <not clear, you can choose or not, both ok>
D. Dependent relief - Parent in law who is 100 years old
E. Dependent relief - Legitimate adoptive Mum who is 50 years old, earning VND10 mil per
month.
F. Compulsory deductions withheld from salary in Japan
G. Voluntary pension fund not exceeding VND12 mil/year. The pension fund is a vonluntary
pension fund in the US (where the expatriate employee is originally based).
<must be VN-based fund>
H. Donations to charitable, humantarian and study encouragement funds (subject to condition)
I. Donations to establishments taking care of disadvantaged children, homeless eldery people

(subject to condtion)
Question 2.21:
Mr Tomaz is a Hong Kong citizen and tax resident. He arrived in Vietnam to
work on 21 April 2014 and on completion of his employment contract, he left
Vietnam on 31 October 2015. In the years 2014 and 2015, he spent the
following numbers of days in Vietnam:
From 21 April to 31 December 2014 – 130 days

From 1 January to 20 April 2015 – 64 days
From 21 April to 31 October 2015 – 110 days
Based solely on the above information, what is Mr Tomaz’s tax residency

status in his first and second tax year in Vietnam?
First year Second year

A Resident Resident
B Resident <130+64 = 194> Non-resident <110+64 = 174 days>
C Non-resident Resident
D Non-resident Non-resident
Question 2.22:
Mr Ho is a tax resident in Vietnam. In 2014 he received income from

Country X, on which Country X had imposed personal income tax at its
domestic rates. Mr Ho is not a resident in Country X.
Which of the following statements correctly describes Mr Ho’s

entitlement to a tax credit in Vietnam for the tax imposed by County
X?
A No tax credit can be claimed in Vietnam
B A tax credit can be claimed in Vietnam only if Country X has a double

tax avoidance agreement (DTAA) with Vietnam
C A tax credit can be claimed in Vietnam even if Country X does not have
a DTAA with Vietnam, but only up to the amount of personal income tax
payable under the Vietnamese tax regulations on the income
D A tax credit can be claimed in Vietnam for the full amount of the
overseas tax without any conditions or restrictions
Question 2.23:
Which of the following items of income would NOT be subject to

personal income tax in Vietnam?
(1) Medical support for fatal disease from the employer to the parent-in-
law of an employee
(2) One time round trip home leave air fares for the family of an expatriate
employee
(3) Kindergarten tuition fees for the children of a Vietnamese employee
working abroad
(4) Voucher issued by the employer to an employee for lunches in the
canteen operated by the employer
(5) Purchase of medical insurance (non-accumulative insurance) from
foreign insurers
foreign insurers for employees (at the time of purchase)
domestic insurers for employees (at the time of purchase)
(8) One-off relocation support in cash for Vietnamese (on secondment in
Germany) to come back to his company in Vietnam
ROUND 3 –
HIGH SCHOOL
Question 3.1:
Mr A’s first tax year is from July 2017 to June 2018 . Mr A’s second
tax year is from Jan 2018 to Dec 2018.
He stayed in Vietnam for more than 182 days in both tax years.
Per finalization, he has paid VND120 million of PIT for first tax year
and will have to pay VND142 million for second tax year. For the
second tax year he already makes provisional payment of VND30
million of PIT for the period from July 2018 to Dec 2018.
What is the remaining PIT payable for second year?
Question 3.2:
On 1 April 2014, Mr Chau, a Vietnamese national, started employment
with a new employer, CTD Co. CTD Co has a policy whereby both the
employer and the employee contribute to a voluntary pension fund
approved by the Government. The monthly contributions for the
employer and the employee, respectively, are VND4·5 million and
VND2 million.
What is the amount of the deduction Mr Chau can claim against his
taxable income for the above contributions in 2014?
A VND9 million
B VND78 million
C VND24 million
D VND18 million
Question 3.3:
Mr Albert, a Canadian citizen, arrived in Vietnam on 18 September 2013

to work under an employment contract. He stayed in Vietnam for the
whole of the time until 19 June 2014 when he completed his employment
contract and left Vietnam.
What is the amount of personal relief to which Mr Albert will be

entitled to for his period in Vietnam?
A VND0 million
B VND90 million
C VND81 million
D VND108 million
Question 3.4:
Hoang is a manager of a professional consulting firm. Besides his

employment salary, Hoang also invested a significant portion of his
savings into a start-up company in Bac Giang province. This year, thanks
to positive business result, the start-up company paid dividends to Hoang
in the following two (02) manners:
(a) An in-cash dividend being VND500,000,000; and

(b) An in-share dividend (one dividend share for one original share that
Hoang was holding at year-end). The additional in-share dividend is
estimated to be VND1,000,000 value.
What is the amount of PIT payable in case a and b above:
A VND0 million (for both)

B VND25 million/ VND50 million
C VND25 million/ VND0 million
D VND0 million/ VND50 million
Question 3.5 (Briefly write down your answers to paper)
In the calendar year 2018, Huy – despite being a student – has earned more than
VND1 billion of incomes from the following sources:
(1) Huy purchased a lot of lottery tickets and finally won: VND100,000,000;
(2) Huy transfers the right to use his song (composed by himself- not yet registered
anywhere) to a street band: VND50,000,000
(3) Huy receives a brand new Macbook and Iphone Xs Max from his brother –
who came back to Vietnam from Australia for a short holiday: VND100,000,000
(4) Huy’s father transferred an apartment in Ecopark to him as a gift for his
twenties;
(5) Huy is a master in Korean, therefore he acted as a cabin translator in a number
of Korean enterprises’. For each time, he was paid VND100,000,000.
(6) Huy purchased 1,000 stocks of VinGroup at VND200,000 per stock. Now, the
market value of the stocks increases to VND 650,000 per stock. Huy is very happy
because the investment value is now VND450 million more.
PIT is inclusive. Please specify PIT treatment and PIT payable for each case.
Question 3.6
In 2015, Company A agreed with its employees to co-participate

in a voluntary pension scheme, of which Company A will
contribute 80% and the employee will self-contribute the rest on a
monthly basis. Total monthly contribution required is
VND10,000,000. Total non-deductible contribution expense for
FY2015’s CIT is approximately:
 (a) 0 million
 (b) 84 million
 (c) 100 million
 (d) Others
Question 3.7:
Vietnamese entity A entered into an agreement to act as the shipping
agent in Vietnam for K-Line, a Japanese shipping company. According to
the agency agreement, A is responsible for receiving goods from
Vietnamese customers for international shipping, issuing bills of lading
and collecting freight on behalf of K-Line in Vietnam.
In December 2018, K-Line accepted an order from B, a Vietnamese
customer, to ship goods from Vietnam to US for a freight cost of
USD120,000 plus a surcharge of USD40,000 for over-sized goods (both
amounts inclusive of all taxes in Vietnam). A leased a vessel from a
Vietnamese company to transport the goods from Vietnam to Thailand
from where the goods would be shipped on to US.
The shipping freight cost from Vietnam to Singapore was USD30,000.
What is the FCT payable of K-line?

(a) USD13,000
(b) USD2,600
(c) USD15,600
Question 3.8:
Company A leases a vehicle from a foreign contractor B with the fee

being USD10,000 (net of taxes). In order to transfer the equipment to
Company A’s factory, B has to incur the following expenses:
(1) Transportation fee from B site to factory of A: USD800
(2) Vehicle Insurance: USD1,000
(3) Vehicle registry fee: USD200
(4) Fee for vehicle conductors: USD300*3 days
B has supporting documents to evidence all of the above (except 3)
What is the taxable income for FCT purpose?

(a) USD7,100
(b) USD7,300
(c) USD8,200
Question 3.9
In 1 April 2015, Company A purchased a 16-seat Hyundai car for
VND2,750,000,000 (including 10% Value Added Tax) to
immediately use for its business. Company would depreciate the
car for 5 years – which is in line with Circular 45. Total deductible
depreciation for FY2015’s CIT is approximately:
 (a) 42 million
 (b) 0 million
 (c) 375 million
 (d) 500 million
Question 3.10
In 1 January 2015, Company A purchased a BMW Series 5 for
 (a) 42 million
 (b) 0 million
 (c) 320 million
 (d) Others
Question 3.11 – Upon carrying out tax audit at Company A, tax
inspectors identified an under-tax declaration of VND300 million – which
should have been declared and paid as of 31 March 2017. The
Company has not settled the same amount to the State Budget by 31
March 2018 (rounding up to 365 days). Company A’s violation act is not
attributed to tax evasion.
Calculate the administrative penalties that should apply to Company A.
(a) 32.85 mil

(b) 332.85 mil
(c) 392.85 mil
Question 3.12 – Company A - a company established and operated
under the laws of Thailand – is entering into a construction contract with a
Vietnamese Project Owner, with project duration being 180 days.
Company A expects to have a Permanent Establishment in Vietnam
during the period, and does not mind applying simplified VAS.
Which of the following FCT declaration methods can Company A choose

to apply in Vietnam:
(a) VAS declaration Method, Hybrid Method and Deemed Method

(b) Deemed Method only
(c) Hybrid Method only
(d) VAS declaration Method only
Question 3.13: Foreign contractor A provides M&E with accompanied
services to Company B (VN entity).
Besides the contract value being USD1 million, Company B also bears
and pays A expenses in connection with A’s expatriate employees
dispatched to Vietnam to perform the accompanied services (amounting
to USD0.1 million)
Question is: Total taxable revenue for FCT purpose is?
(a) 1.1 mil

(b) 1 mil
(c) 0.9 mil
Question 3.14– Janet Jackson, a Brazilian company, signed a contract
with a Vietnamese company, Company X, for the construction of a
factory in Vietnam. The contract value is USD19 million. Janet Jackson
subcontracted part of the construction works with a value of USD3 million
to Company A, a Vietnamese company, and works with a value of
USD2·5 million to Company B, a Chinese company, adopting the
deemed method for foreign contractor tax (FCT). Janet Jackson also
purchased other goods to serve for the works with a value of USD2
million from Vietnamese suppliers.
What is the amount of the foreign contractors’ taxable revenue from

the contract for the purposes of FCT?
A USD19 million
B USD13·5 million
C USD16 million
D USD11·5 million
Question 3.15: Lameda Co, a foreign company based in Singapore,
hired space in a bonded warehouse in Vietnam. The storage space was
used for:
– the temporary storage of materials for Lamevie Co, a Vietnamese
company, prior to their further processing by Lamevie Co; and
– the storage of finished goods for other companies in Vietnam prior to
their distribution in Vietnam.
In the case of the finished goods, the costs of transportation from the
bonded warehouse to the distributors’ warehouse in Vietnam was paid
for by the distributors but reimbursed by Lameda Co.
What are the Vietnamese foreign contractor tax (FCT) implications

for Lameda Co from the above transactions?
With Lamevie Co With other distributors
A Subject to FCT Subject to FCT

B Subject to FCT Not subject to FCT
C Not subject to FCT Subject to FCT
D Not subject to FCT Not subject to FCT
Question 3.16:
Ms Hoai Pham has two eligible dependants. In 2014, her monthly gross
salary was VND50 million and she was responsible for paying 8% social
insurance and 1·5% health insurance.
What is Ms Hoai Pham’s monthly tax liability (to the nearest

VND10,000)?
A VND4·16 million
B VND4·67 million
C VND6·26 million
D VND5·20 million
Question 3.17:
During QI/2018, Company A’s input and output VAT position are as
follows:
Domestic Export Total input Month
Revenue Revenue VAT (both
activities)
2,000 8,000 1,300 January
6,000 8,000 1,200 February
6,000 4,000 1,000 March
(Unit: VNDmillion)
Assuming Company A applies for refund for its export on a monthly
basis and normal VAT rate is 10% (domestic revenue).
Calculate the input VAT refunded amount for three months.

Question 3.1:
Mr A’s first tax year is from July 2017 to June 2018 . Mr A’s second
tax year is from Jan 2018 to Dec 2018.
He stayed in Vietnam for more than 182 days in both tax years.
Per finalization, he has paid VND120 million of PIT for first tax year
and will have to pay VND142 million for second tax year. For the
second tax year he already makes provisional payment of VND30
million of PIT for the period from July 2018 to Dec 2018.
What is the remaining PIT payable for second year?
142 – 30- 120/12*6 months (overlapped) = 52Mil

Question 3.2:
On 1 April 2014, Mr Chau, a Vietnamese national, started employment
with a new employer, CTD Co. CTD Co has a policy whereby both the
employer and the employee contribute to a voluntary pension fund
approved by the Government. The monthly contributions for the
employer and the employee, respectively, are VND4·5 million and
VND2 million.
What is the amount of the deduction Mr Chau can claim against his
taxable income for the above contributions in 2014?
A VND9 million <maximum 1mil/month * 9 months, including

contributions by employer and employee>
B VND78 million
C VND24 million
D VND18 million
Question 3.3:
Mr Albert, a Canadian citizen, arrived in Vietnam on 18 September 2013

to work under an employment contract. He stayed in Vietnam for the
whole of the time until 19 June 2014 when he completed his employment
contract and left Vietnam.
What is the amount of personal relief to which Mr Albert will be

entitled to for his period in Vietnam?
A VND0 million
B VND90 million <full 10 months>
C VND81 million
D VND108 million
Question 3.4:
Hoang is a manager of a professional consulting firm. Besides his

employment salary, Hoang also invested a significant portion of his
savings into a start-up company in Bac Giang province. This year, thanks
to positive business result, the start-up company paid dividends to Hoang
in the following two (02) manners:
(a) An in-cash dividend being VND500,000,000; and

(b) An in-share dividend (one dividend share for one original share that
Hoang was holding at year-end). The additional in-share dividend is
estimated to be VND1,000,000 value.
What is the amount of PIT payable in case a and b above:
A VND0 million (for both)

B VND25 million/ VND50 million
C VND25 million/ VND0 million <0 million to be taxed upon sale>
D VND0 million/ VND50 million
Question 3.5 (Briefly write down your answers to paper)
In the calendar year 2018, Huy – despite being a student – has earned more than VND1 billion of
incomes from the following sources:
(1) Huy purchased a lot of lottery tickets and finally won: VND100,000,000;
(2) Huy transfers the right to use his song (composed by himself- not yet registered anywhere) to a
street band: VND50,000,000
(3) Huy receives a brand new Macbook and Iphone Xs Max from his brother – who came back to
Vietnam from Australia for a short holiday: VND100,000,000
(4) Huy’s father transferred an apartment in Ecopark to him as a gift for his twenties;
(5) Huy is a master in Korean, therefore he acted as a cabin translator in a number of Korean
enterprises’. For each time, he was paid VND100,000,000.
(6) Huy purchased 1,000 stocks of VinGroup at VND200,000 per stock. Now, the market value of the
stocks increases to VND 650,000 per stock. Huy is very happy because the investment value is now
VND450 million more.
PIT is inclusive. Please specify PIT treatment and PIT payable for each case.
1. 100 – 10 = 90*10% = 9 MIL

2. 50-10 = 40 * 5% = 2 MIL
3. No PIT (not falling under taxable income from gifts)
4. No PIT (exempted case)
5. 100*10% = 10 (temporarily withheld, to be finalized at yeat-end along with other
wage/salary items)
6. No PIT now (to be taxed upon sale)
Question 3.6
In 2015, Company A agreed with its employees to co-participate

in a voluntary pension scheme, of which Company A will
contribute 80% and the employee will self-contribute the rest on a
monthly basis. Total monthly contribution required is
VND10,000,000. Total non-deductible contribution expense for
FY2015’s CIT is approximately:
 (a) 0 million
 (b) 84 million <capped at 1 million/month, only take into
account the company contribution expense>
 (c) 100 million
 (d) Others
Question 3.7:
Vietnamese entity A entered into an agreement to act as the shipping
agent in Vietnam for K-Line, a Japanese shipping company. According to
the agency agreement, A is responsible for receiving goods from
Vietnamese customers for international shipping, issuing bills of lading
and collecting freight on behalf of K-Line in Vietnam.
In December 2018, K-Line accepted an order from B, a Vietnamese
customer, to ship goods from Vietnam to US for a freight cost of
USD120,000 plus a surcharge of USD40,000 for over-sized goods (both
amounts inclusive of all taxes in Vietnam). A leased a vessel from a
Vietnamese company to transport the goods from Vietnam to Thailand
from where the goods would be shipped on to US.
The shipping freight cost from Vietnam to Singapore was USD30,000.
What is the FCT payable of K-line?

(a) USD13,000
(b) USD2,600 <No VAT for international transportation, shipping cost
which shipper already pays CIT in VN deductible>
(c) USD15,600
Question 3.8:
Company A leases a vehicle from a foreign contractor B with the fee

being USD10,000 (net of taxes). In order to transfer the equipment to
Company A’s factory, B has to incur the following expenses:
(1) Transportation fee from B site to factory of A: USD800
(2) Vehicle Insurance: USD1,000
(3) Vehicle registry fee: USD200
(4) Fee for vehicle conductors: USD300*3 days
B has supporting documents to evidence all of the above (except 3)
What is the taxable income for FCT purpose?

(a) USD7,100
(b) USD7,300 <all are deducted with supporting docs – See Article 13,
Circular 103>
(c) USD8,200
Question 3.9
In 1 April 2015, Company A purchased a 16-seat Hyundai car for
 (a) 42 million
 (b) 0 million
 (c) 375 million
 (d) 500 million
Question 3.10
In 1 January 2015, Company A purchased a BMW Series 5
<below 10-seat car> for VND2,750,000,000 (including 10% Value
Added Tax) to immediately use for its business. Company would
depreciate the car for 5 years – which is in line with Circular 45.
Total deductible depreciation for FY2015’s CIT is approximately:
 (a) 42 million
 (b) 0 million
 (c) 320 million <capped at VND1.6 billion per year>
 (d) Others
Question 3.11 – Upon carrying out tax audit at Company A, tax
inspectors identified an under-tax declaration of VND300 million – which
should have been declared and paid as of 31 March 2017. The
Company has not settled the same amount to the State Budget by 31
March 2018 (rounding up to 365 days). Company A’s violation act is not
attributed to tax evasion.
Calculate the administrative penalties that should apply to Company A.
(a) 32.85 mil

(b) 332.85 mil
(c) 392.85 mil
(d) Others (please specify): 92.85 = 0.03%*365 days*300mil +
20%*300Mil (tax auditor detects)
Question 3.12 – Company A - a company established and operated
under the laws of Thailand – is entering into a construction contract with a
Vietnamese Project Owner, with project duration being 180 days.
Company A expects to have a Permanent Establishment in Vietnam
during the period, and does not mind applying simplified VAS.
Which of the following FCT declaration methods can Company A choose

to apply in Vietnam:
(a) VAS declaration Method, Hybrid Method and Deemed Method

(b) Deemed Method only <must at least from 183 days>
(c) Hybrid Method only
(d) VAS declaration Method only
*****
Three conditions:
1. Term from 183 days
2. Permanent Establishment
3. Simplified (hybrid method) or Full VAS application (VAS method)
Question 3.13: Foreign contractor A provides M&E with accompanied
services to Company B (VN entity).
Besides the contract value being USD1 million, Company B also bears
and pays A expenses in connection with A’s expatriate employees
dispatched to Vietnam to perform the accompanied services (amounting
to USD0.1 million)
Question is: Total taxable revenue for FCT purpose is?
(a) 1.1 mil <including payments made by VN party on behalf of

contractor>
(b) 1 mil
(c) 0.9 mil
Question 3.14– Janet Jackson, a Brazilian company, signed a contract
with a Vietnamese company, Company X, for the construction of a
factory in Vietnam. The contract value is USD19 million. Janet Jackson
subcontracted part of the construction works with a value of USD3 million
to Company A, a Vietnamese company, and works with a value of
USD2·5 million to Company B, a Chinese company, adopting the
deemed method for foreign contractor tax (FCT). Janet Jackson also
purchased other goods to serve for the works with a value of USD2
million from Vietnamese suppliers.
What is the amount of the foreign contractors’ taxable revenue from

the contract for the purposes of FCT?
A USD19 million
B USD13·5 million
C USD16 million
D USD11·5 million
Question 3.15: Lameda Co, a foreign company based in Singapore,
hired space in a bonded warehouse in Vietnam. The storage space was
used for:
– the temporary storage of materials for Lamevie Co, a Vietnamese
company, prior to their further processing by Lamevie Co; and
– the storage of finished goods for other companies in Vietnam prior to
their distribution in Vietnam.
In the case of the finished goods, the costs of transportation from the
bonded warehouse to the distributors’ warehouse in Vietnam was paid
for by the distributors but reimbursed by Lameda Co.
What are the Vietnamese foreign contractor tax (FCT) implications

for Lameda Co from the above transactions?
With Lamevie Co With other distributors
A Subject to FCT Subject to FCT

B Subject to FCT Not subject to FCT
C Not subject to FCT Subject to FCT
D Not subject to FCT Not subject to FCT
Question 3.16:
Ms Hoai Pham has two eligible dependants. In 2014, her monthly gross
salary was VND50 million and she was responsible for paying 8% social
insurance and 1·5% health insurance.
What is Ms Hoai Pham’s monthly tax liability (to the nearest

VND10,000)?
A VND4·16 million
B VND4·67 million
C VND6·26 million
D VND5·20 million
Question 3.17:
During QI/2018, Company A’s input and output VAT position are as follows:
Domestic Export Revenue Total input VAT Month

Revenue (both activities)
2,000 8,000 1,300 January
(Unit: VNDmillion)
6,000 8,000 1,200 February
6,000 4,000 1,000 March
Assuming Company A applies for refund for its export on a monthly basis and normal VAT rate is
10% (domestic revenue). Calculate the input VAT refunded amount for three months.
**** (See VAT refund section on VAT Circular for details)
Jan:
- Allocated Input VAT to Export/Domestic: 1300*0.8=1,040 (Exp) – 260 (domestic)
- Output VAT (Domestic): 2,000*10% = 200 (fully offset against 260 domestic)
 Input VAT refunded (export) = 800 (since 1,040>800 = 10% export revenue)
Feb:
- Allocated Input VAT to Export/Domestic: 1200*8/14=685 (Exp) – 515 (domestic)
- Output VAT (Domestic): 6,000*10% = 600 (fully offset against 515 domestic + 85 export)
 Input VAT refunded (export) = 685 – 85 = 600 (>300 & <10%Export revenue)  refunded
Mar:
- Allocated Input VAT to Export/Domestic: 1000*4/10=400 (Exp) – 600 (domestic)
- Output VAT (Domestic): 6,000*10% = 600 (fully offset against 600 domestic)
 Input VAT refunded (export) = 400 (>300 & = 10% export revenue)  refunded
ROUND 4 –
UNIVERSITY
(until 1 June)
Step 1 - Choose one (01) of the below box
Step 2 – Come here and write down your

answers (in details) to the board behind me
Step 3 - …
THANK YOU !
GOOD LUCK!
IN TOUCH:
MR. NGUYEN VIET DZUNG
TAX & BUSINESS ADVISORY
PARTNER
NEXIA VIETNAM
DUNG.NGUYEN@NEXIA.VN
NDUNG85@GMAIL.COM
0913.06.24.12
https://
www.facebook.com/nguyen.v.dung.
3386

Golden Bell Challenge: Acca F6 Taxation - June 2019

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Golden Bell Challenge: Acca F6 Taxation - June 2019

Uploaded by

Copyright:

Available Formats

ACCA

F6 TAXATION – JUNE 2019

Round Qualification Time for each

Scenario 1: You continue to answer questions from next round. If this

Fell free to use mobile phones or laptops or calculators.

Any concerns or disputes in connection with answers, please come to

Foreign contractor tax (or withholding tax) is a tax type.

The current penalty rate for tax under-declaration is as follows:

Which of the following taxes are included in the VAT-taxable price:

(a) Special Sales Tax

Which of the below is NOT correct:

(d) Direct Tax includes Corporate Income Tax only.

Fill in the blanks (other similar fill-in is accepted):

Transactions between parties - qualified as related parties in accordance with

Mr A first arrived and started his assignment in Vietnam as from 1 July

(a) July 2017 to June 2018

Fill in the missing parts:

In principle, Foreign contractor tax (or withholding tax) and Personal

Which of the below is NOT correct:

(a) PIT is declared/provisionally paid on monthly/quarterly basis (subject

(b) VAT is declared/paid on monthly/quarterly basis (subject to conditions)

(c) FCT is declared on ad-hoc basis (or monthly basis if registered in

(d) CIT is not required to be declared (but provisionally paid on a quarterly

Which of the below is NOT the difference between PIT calculation

(a) PIT rate

Note, you are requested to specify the difference (in written).

Question 1.11 - FCT rate applicable on whole contract value is:

(a) 5% VAT, 5% CIT

Mr A receives housing benefits in cash with the amount being USD2,000

(a) Not subject to PIT;

Fill in the blanks (other similar fill-in is accepted):

Tax administration of Vietnam is regulated on a ……. basis. That means,

Upon establishment, enterprises are granted with …. …. (same as

Question 1.14 - FCT rate applicable is:

(a) 3% CIT, 2% VAT

Foreign Contractor A also signs contracts to sells the same goods to

Question 1.15: When A receives monies from C, any FCT exposure?

Explain your answer

FILL IN THE BLANKS (similar fill-in accepted):

VAT is an ….. tax imposed on goods and services …., …. and …. In

Company C will use such goods delivered by Company B (being

Question 1.17: Any FCT exposure?

(a) Same output rate;

After the ownership of the goods is transferred to B at Hai Phong port, A –

Explain your answer.

How many methods of VAT declaration?

Name and briefly explain about them.

After the ownership of the goods is transferred to B at Hai Phong port, A –

Explain your answer.

Name them and brief the calculation method (must be attempted)

Which of the followings are NOT subject to VAT:

(a) Technology transfer

What are they? (must be attempted)

That the contract price is quoted NET of Vietnamese taxes means:

VAT taxing time of provision of goods and services?

(a) Transfer of goods ownership/ completion of services

Cases of VAT refund?

(a) Export (accumulated from VND300 mil)

PIT calculation - Net salary (with housing allowance)

1. Determine Net Income excluding housing allowance: Net Salary + Taxable

Question 1.31 - FCT rate applicable is:

(a) 3% CIT, 2% VAT